Improved Mobile Monetization For RetailMeNot Should Be A Boon In 2015

RetailMeNot IncSALE

was reviewed by Wunderlich Securities on Tuesday after the company reported strong fourth quarter earnings. Revenue was 2 percent above analyst estimates while EPS was 34 percent above estimates. Wunderlich currently rates RetailMeNot as a Buy and lowered its price target from $32 to $28. Analyst Blake Harper wrote, "With desktop traffic peaking and set to decline in FY15, the ability for the company to improve mobile monetization beyond 20% of the desktop levels in 2015 should be the largest factor to drive the model and stock higher, especially given shopping is the fastest growing mobile category." Wunderlich offers 4 key points on RetailMeNot going forward:

Impressive fourth quarter results shows the seasonal strength of their business.
Desktop peaking and mobile monetization is a concern for the company in 2015 as analysts expect desktop traffic will decline.
Progressing to mobile stores: The company plans on increasing its sales force by 50% this year, partly to drive mobile in-store sales and consolidate its online and in-store sales efforts.
Recent share repurchases signal confidence in the company by board members.

RetailMeNot has traded at $15.17, down 1.5 percent.

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Improved Mobile Monetization For RetailMeNot Should Be A Boon In 2015