Barrington Research Sees Opportunity to Capitalize on Inefficiencies in Stock for Actua Corporation

In a report published Friday, Barrington Research analyst Jeff Houston reiterated an Outperform rating and $25.00 price target on

. In the report, Barrington Research noted, “We maintain our OUTPERFORM investment rating and $25 price target. Actua (formerly ICG Group) is a diversified, pure-play vertical SaaS company with a large market opportunity, a leadership position in each of its markets, strong recurring-revenue growth, and profitability potential. We expect Actua to deliver great returns on its $199 million purchase of FolioDynamix given management's 15-year track record. With SaaS wealth management technology, research, and services to support the complete wealth management lifecycle, it joins MSDSonline (OSHA regulation), Bolt Solutions (P&C insurance), and GovDelivery (government communications) as its fourth SaaS-vertical business unit. Actua's stock trades at a 2015 EV/Revenue of 3.5x, below the overall fast SaaS group's 6.2x, but we think it should trade more in line and there is upside potential to estimates.” Actua Corporation closed on Thursday at $15.75.