Brean Capital Raises Price Target On Rentrak On Company Update

In a report published Tuesday, Brean Capital analyst Todd Mitchell reiterated a Buy rating on

, and raised the price target from $86.00 to $95.00. In the report, Brean Capital noted, “We expect shares of RENT to continue to outperform in 2015. Rentrak is a big-data solution provider for media measurement which we believe is well positioned to displace Nielsen as the dominant provider in the estimated $3 billion annual U.S. TV ratings business. After a banner year in 2014, we expect shares of RENT to continue to outperform in 2015 due to accelerated revenue growth and increased awareness of its competitive advantages. Specifically, we look for 80%+ revenue growth for Rentrak's core TV Essentials ratings service, underpinned by continued strong local station growth, now aided by integration with industry execution platforms. We also believe that shares could be positively impacted by increased evidence of Rentrak's participation in the national television advertising market in the form of large network and/or advertiser deals, and the launch of a timely on-demand ratings product which should provide greater visibility to the need for Rentrak's approach to television ratings for the shift to TV Everywhere (TVE). As a result, we are raising our target price for shares of RENT to $95 from $86, and we reiterate our Buy rating.” Rentrak closed on Monday at $76.74.