UPDATE: Jefferies Initiates Coverage Of TechTarget

In a note released early Tuesday morning, Jefferies analyst Brian Pitz initiated coverage on TechTarget TTGT with a Buy rating and set a $12 price target.

"We think Tech Target has reached an inflection point where growth will be reignited by a hit new product (IT Deal Alert) and continued international expansion," said Pitz.

Pitz noted that IT deal alert (ITDA) was only released in 2013 and already accounted for 15 percent of the company's revenue in the first quarter of 2014. Moreover, he pointed out that Tech's management has revised its estimate for ITDA revenue growth from tripling in 2014 to quadrupling.

Looking to the company's international business, Pitz noted that ITDA will launch in the second half of 2014, which is expected to drive growth in the segment.