UPDATE: Credit Suisse Reinstates Coverage on Rocket Fuel with Outperform Rating, $70 PT on Increased Estimates, New Primary Share Issuance

In a report published Thursday, Credit Suisse analyst Stephen Ju reinstated coverage on

with an Outperform rating and $70.00 price target. In the report, Credit Suisse noted, “FUEL shares have pulled back ~20% since pricing its secondary on 30 January. Rocket Fuel is still the same company as it was last week, and as valuation has been the only sticking point in our stance, we raise our investment rating to Outperform and recommend investors add or initiate new positions on the pullback. Our long-term thesis remains unchanged - FUEL is positioned to continue to gain share in a secular growth segment (RTB) within online marketing as media fragmentation and device access are pushing marketer adoption of programmatic buying tools that work in real time to purchase ad inventory. Furthermore FUEL participates in a large TAM as it facilitates spend across segments excluding search (display, social, mobile), which we believe was at ~$42 billion in 2012 and should reach $73 billion within the next few years.” Rocket Fuel closed on Wednesday at $51.00.