Quotient Shares 'Set Up Well' For Further Price Appreciation In 2017

Loop Capital is bullish on Quotient Technology Inc QUOT as it believes the Retailer iQ product should drive business momentum, which sets the stock up for further price appreciation in 2017.

“We expect the company's Retailer iQ product to drive transaction growth in Q4 and 2017, as well as provide unique data to drive its nascent Insights business,” analyst Blake Harper wrote in a note.

Harper expects transaction growth of 18 percent in 2017 as Retailer iQ continues to ramp future revenue growth for the company, which provides digital promotions and media solutions.

Other key growth drives include the relaunch of its Coupons.com platform, which should include the receipt scanning capabilities from its Shopmium acquisition. The company also launched a new distribution channel for its customers through TV ads, which could be incremental over time.

On the TV ads front, the company has partnered with Ensequence, which has distribution with 15 million cable subscribers and 62 network affiliates.

“We expect a modest contribution from this channel over time with a positive ROI for the company and customers, as well as the possibility to expand its online video ad capability as it looks to promote an upgraded Coupons.com experience,” Harper continued.

In addition, the company’s Insights business is expected to provide unique data at scale and contribute to revenues in 2017.

Harper maintains his Buy rating and $16 price target on the stock, which closed Tuesday’s trading at $10.55. Though the stock is down 13 percent in the past week, it is still up 55 percent year-to-date. The price target of $16 represents potential upside of 52 percent over December 27 closing price.