Benzinga Breakfast Notes: Benchmark Increases United Online Price Target From $19 To $20

Highlights from Benchmark's note on United Online, Inc. UNTD.

1. The bigger story, in our view, was the announcement of 5 new product launches, including an expected entry into the MVNO market in late November.

2. Other key launches include mobile app development for the MyPoints and classmates/StayFriends brands.

3. Management has been forced to play catch-up on the tech front to appropriately position its legacy assets for a better foundational platform off of which to build.

4. For 2015, we are calling for flat y/y revenue growth at $217.9 million, driven by a return to growth at MyPoints, increased Product sales and modest growth in Communications advertising.

5.We believe United could generate nearly $19 million in free cash flow in 2015, adding to their existing $76.3 million cash hoard, or $5.34 per share, with no debt.

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