Deutsche Bank Says Maxpoint Is 'A Leading Player,' Initiates Coverage With Buy Rating

In a report published Tuesday, Deutsche Bank analyst Ross Sandler initiated coverage of

MaxPoint Interactive IncMXPT

with a Buy rating and $13 price target as the company is a "leading player" in the ad tech sub-sector. MaxPoint manages display ad campaigns on behalf of national brands that sell their products locally. The company helps drive foot traffic and increased sales at retail outlets. "Our Buy rating is based on our belief that MaxPoint will buck the negative stock performance for most of public ad tech, based on the company's unique approach and somewhat insulated competitive landscape," Sandler wrote. "We think MaxPoint can deliver solid results (as

Criteo SA

and

The Rubicon Project Inc

have), and that its discounted valuation should drift higher." Sandler continued by offering three reasons why MaxPoint should have "ample runway" to grow its business, which is currently "sub-scale."

MaxPoint operates a very large total addressable market, with over $50 billion for local shopper marketing campaigns.
MaxPoint has a unique set of technologies that differentiate its approach toward local.
MaxPoint is "insulated" from the competitive dynamics seen in the national display space as its campaigns are contextual and not cookie-based.

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