Deutsche Bank: Customer Checks Show RealPage's Thesis is Intact

In a research report published this morning by Deutsche Bank, recent checks have shown there is long-term opportunity for RealPage

to up-sell/cross-sell. According to Deutsche Bank, " The recent stock sell-off (down ~30% YTD), and RP now trading at 3.5x 2013 revenues, imply bearish prospects for RP's stated $9bn TAM, which we disagree. Our recent checks in the last month confirm the longer-term opportunity for up-sell/cross-sell and higher unit penetration. We also expect demand for rentals to be sustained, despite an upturn in housing demand. While we recognize that the stock is in the ‘penalty box' for at least a couple of quarters until they execute organically, we are optimistic on the longer-term TAM opportunity, and reiterate our Buy rating and $32 PT." RealPage closed yesterday at $18.56.