UPDATE: Brean Capital Initiates Coverage on comScore with Buy Rating, $40 PT on Market Leader Position

In a report published Thursday, Brean Capital analyst Todd Mitchell initiated coverage on

with a Buy rating and $40.00 price target. In the report, Brean Capital noted, “Recent developments enhance comScore's competitive position. We are initiating on comScore with a Buy rating and $40 price target. comScore is a leader in digital measurement and analytics, which we estimate to be a $2.0-$2.5 billion market that is growing rapidly. We are recommending SCOR because: 1) we believe that vCE incorporation into DoubleClick's ad server enhances comScore's competitive positioning and could accelerate top-line growth in the near term, 2) we see optionality in cross-platform measurement afforded by comScore's FTC-mandated access to data from the Arbitron PPM panel in the medium term, and 3) our view that comScore is well positioned in the long term for the convergence of online and TV advertising into digital advertising, which will have a creative model like TV and an execution and economic model like online. Our price target of $40 is based on 30x 2018E FCF of $67 million discounted to NPV at 13.3%.” comScore closed on Wednesday at $31.22.