Brean Capital Sees Compelling Opportunity Created By Recent Pullback In Rentrak
In a report published Thursday, Brean Capital analyst Todd Mitchell reiterated a Buy rating and $72.00 price target on Rentrak (NASDAQ: RENT).
In the report, Brean Capital noted, “Recent pullback in RENT provides compelling opportunity. Shares of RENT have retrenched 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. The announcement last night of FOX Television's O&O stations is just another example of Rentrak's superior solution. Moreover, 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 $52.71, Buy) sees a multibillion opportunity in advertising and that its acquisition of TWC (TWC $143.01, Buy) will serve as the catalyst for the adoption of new models for TV advertising. As TV advertising adopts the economic and execution models of online, 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.”
Rentrak closed on Wednesday at $48.39.
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