UPDATE: Credit Suisse Initiates RetailMeNot at Neutral on Valuation

In a report published Tuesday, Credit Suisse analyst S. Ju initiated coverage on RetailMeNot SALE with a Neutral rating and $31.00 price target.

In the report, Credit Suisse noted, “SALE's stock price has appreciated 53% since its initial pricing, and only valuation holds us back from a more constructive rating, as the risk/reward appears balanced at current levels. We believe that RetailMeNot already leads the sector by a wide margin, and over the longer term more consumer leads will likely generate greater merchant transaction volume, which in turn should spur more and better discount offerings. Only email and SEO offer better ROI for the retailer/advertiser, and coupons tap into an already well established consumer behavior, as the value proposition is simple: save money.”

RetailMeNot closed on Monday at $32.28.