Major Deal at Velti (VELT) Will Move Needle on Street Estimates

September 19, 2012 8:55 AM EDT
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    3 Buy, 7 Hold, 1 Sell

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    Up: 30 | Down: 30 | New: 23
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On Tuesday Velti (NASDAQ: VELT) announced a 2-year, $27 million deal with a “major US brand”. After speaking with management, analysts at Needham believe this is a very strong deal for the company, due to the financial impact/scope, and the impact it has on VELT’s US presence.

“We believe this deal, while large in scope, may already be included in the current VELT outlook. Our CY12 and CY13 estimates are well above consensus, and unchanged, although today we have higher conviction in our estimates based on this deal announcement,” said analyst Scott Zeller.

“We anticipate Street consensus will have to move upwards towards our CY13 estimates of $398m and $1.02 EPS,” added Zeller.

Needham has a Buy rating and $13 price target on VELT.

For an analyst ratings summary and ratings history on Velti click here. For more ratings news on Velti click here.

Shares of Velti closed at $9.70 yesterday.

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