Imperial Capital Initiates ReachLocal: Outperform, $12 PT

Imperial Capital initiated ReachLocal

coverage with an Outperform rating and $12 price target in a research report published today. In the report, Imperial Capital stated, "in our view. RLOC's business is driven by ~800 IMCs [Internet Marketing Consultants], which serve as the company's global sales force. After one year of heavy investment, IMCs generate meaningful contribution margin for the business and serve as a key source of differentiation for RLOC. Additionally, international IMCs are more profitable to the company than domestic IMCs, partially driving the company's international expansion strategy." Shares of ReachLocal closed today at $9.10, down 1.09% from Monday's market close.