UPDATE: Wunderlich Securities Initiates Coverage on RetailMeNot with Buy Rating, $38 PT on Position as Leader in Digital Marketing Content

In a report published Friday, Wunderlich Securities analyst Blake T. Harper initiated coverage on

with a Buy rating and $38.00 price target. In the report, Wunderlich Securities noted, “We are initiating coverage of RetailMeNot, Inc. (SALE) with a Buy rating and $38 price target. RMN is the largest and, we believe, the best-positioned provider of digital marketing content to retailers and consumers and it should continue to benefit from strong network effects with each. The company's ability to better integrate its mobile platform into in-store shopping experiences and eventually into digital wallet services should be future catalysts to generating upside to current growth expectations, along with more personalized content. We forecast the company to grow revenues at a 21% CAGR over the next three years; our price target is based on our DCF and is at the peer average of 6x EV/FY15 sales.” RetailMeNot closed on Thursday at $28.63.