Brean Capital Expects Outperformance To Continue At comScore

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

, and raised the price target from $44.00 to $54.00. In the report, Brean Capital noted, "We expect shares of SCOR to continue to outperform in 2015. We think comScore is well positioned to emerge as a leading playing in the estimated $2 billion global market for measuring digital advertising. We look for accelerating revenue growth in 2H15 to lead to upward revisions in estimates and continued outperformance. The key driver will be an expected 50%+ growth for comScore's vCE digital advertising ratings, underpinned by integration into Google's DoubleClick execution strategy, continued double-digit growth in its core Media Metrix (MM) web traffic reporting, and nascent adoption of its cross platform offering." The report continued, "We also believe that shares could be positively impacted by increased evidence that Nielsen has over-represented the competitive positioning of its competing OCR offering and/or rising speculation of consolidating transactions in the measurement space. We have pushed out our target price for shares of SCOR to 2015 YE from 2014 YE and are raising it to $54 from $44. Our new target price of $54 is based on 35x 2018E FCF of $84 million discounted to NPV at 12.9%." comScore closed on Monday at $43.70.