Piper Jaffray Maintains Overweight, $50 PT on LogMeIn

Piper Jaffray reiterates its Overweight rating and $50 target price on LogMeIn LOGM as it models the impact of Ignition going the freemium route. Piper Jaffray comments, "Following yesterday's announcement of Ignition moving to a freemium/subscription model, we are lowering our 2012 revenue estimate by 2% while raising our 2013 revenue estimate by 1%. We believe that the move to a freemium model will exponentially (by 10 times or greater) increase the top of the funnel of LogMeIn iOS users (formerly called Ignition). However, despite the widening of the funnel, it will take some time for many of the freemium users to convert to a subscription. In spite of the impact to 2012 revenue, we believe the shift to a subscription model is the right decision to bring usership and eventual paying customers to LogMeIn's suite of products." LOGM closed at $40.02 per share on Thursday.