UPDATE: Piper Jaffray Initiates Coverage on Rocket Fuel as Display Markets Shift to RTB

In a report published Tuesday, Piper Jaffray analyst Gene Munster initiated coverage on

with an Overweight rating and $70.00 price target. In the report, Piper Jaffray noted, “While Rocket Fuel has far surpassed its IPO price, we to believe the momentum of the shift to real-time bidding (RTB) platforms for all forms of display media will offer continued high growth for the company. We believe that as the display market continues to shift to sales via RTB, which represented 16% of display in 2012 and we believe is headed to 50%+ in the next five years, that Rocket Fuel should be able to sustain its impressive growth rates. Given our expected growth rates of 80%+ in CY14 and 60% + in CY15, we believe that FUEL deserves to trade at a valuation that would put it ahead of many of its peers and closer to industry leaders. As a result, we initiate with an Overweight on shares of FUEL with a $70 price target.” Rocket Fuel closed on Monday at $61.40.