Brean Capital Expects Segmentation to Highlight Growth Potential for Rentrak Corporation

In a report published Monday, Brean Capital analyst Todd Mitchell reiterated a Buy rating and $72.00 price target on

. In the report, Brean Capital noted, “New segmentation should better highlight growth potential. Rentrak moved its legacy Home Entertainment segment to discontinued operations at the end of F2014. The remaining businesses that Rentrak has are leaner and with faster growth. In particular, 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 $53.39, Buy) sees a multi-billion opportunity in advertising and that its acquisition of TWC (TWC $145.88, 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 Corporation closed on Friday at $49.96.