UPDATE: Deutsche Bank Upgrades Rentrak to Buy, Raises PT to $20
Deutsche Bank raises its rating on Rentrak (NASDAQ: RENT) to Buy from Hold and raises its price target by $5 to $20 as momentum in TV linear measurement has turned for the better.
Deutsche Bank says, "The disappointingly slow progress in linear TV measurement has been one of the key reasons for our Hold rating but momentum has turned for the better. Rentrak just wrapped a quarter in which it signed up 51 new TV stations from 8 station groups, nearly 4x the trend rate. While further deterioration in Home Entertainment is still a risk, the earnings power (EBITDA/EPS up >60% p.a. over the next two years) is quite powerful and should justify a valuation of 24x calendar 2012 EBITDA (16x calendar 2013)."
RENT closed at $16.38 per share on Thursday.
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