Brean Capital Sees Compelling Opportunity from Recent Pullback in Rentrak

In a report published Tuesday, Brean Capital analyst Todd Mitchell reiterated a Buy rating and $74.00 price target on Rentrak RENT. In the report, Brean Capital noted, “Shares of RENT have retrenched from recent highs with no change in the underlying conditions for their original ascent. In fact, we see strong evidence to the contrary. TVEssentials growth is accelerating due to growing awareness of the advantages it brings to the ad buying process, and the industry is acutely focused on the need to shift advertising to on-demand content where Rentrak is uniquely well positioned. "We believe Comcast (CMCSA, $48.66, Buy) sees a multibillion dollar opportunity in advertising and that its acquisition of TWC (TWC, $134.44, Hold) will serve as the catalyst for the adoption of Internet models for TV advertising. As TV advertising adopts the economic and execution models of online advertising, it will need to adopt similar measurement and analytical tools. We see Rentrak as singularly well positioned to fulfill this need and believe that the addressable opportunity is well in excess of $1 billion, making it a highly strategic asset.” Rentrak closed on Monday at $47.69.