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UPDATE: Wunderlich Securities Reiterates on RetailMeNot Following Impressive Quarter Report

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Does RetailMeNot Deal Read Through For Comparable Peers?

In a report published Friday, Wunderlich Securities analyst Blake T. Harper reiterated a Buy rating on RetailMeNot (NASDAQ: SALE), and raised the price target from $38.00 to $44.00.

In the report, Wunderlich Securities noted, “RetailMeNot, Inc. (SALE) reported results in its seasonally strongest Q4 period, well above us and the consensus: $78.5 million in revenues, up 55% Y/Y compared to $68.8 million, and up 35% Y/Y due to a strong promotional period by retailers and strong mobile activity. Q4 EBITDA and non-GAAP EPS also beat our estimates and the consensus and the company guided Q1 and FY14 revenues and EBITDA higher as well. It was a very clean quarter; the company is executing well on its core business and is on the cusp of penetrating a much larger adjacent market with mobile/in-store coupons. We are raising our price target from $38 to $44 based on our DCF model with higher estimates, which implies valuation multiples of 7x EV/S, 18x EV/EBITDA, and 34x P/E on FY15 estimates, which is in line with peers.”

RetailMeNot closed on Thursday at $37.27.

Latest Ratings for SALE

Apr 2017Credit SuisseUpgradesUnderperformNeutral
Apr 2017JefferiesDowngradesBuyHold
Apr 2017RBC CapitalUpgradesUnderperformSector Perform

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Posted-In: Blake T. Harper Wunderlich SecuritiesAnalyst Color Price Target Analyst Ratings


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