Needham & Company Maintains a 'Buy' on Velti (VELT); Solid Quarterly Report

May 16, 2012 8:42 AM EDT
Get Alerts VELT Hot Sheet
Price: $0.06 --0%

Rating Summary:
    3 Buy, 7 Hold, 1 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 29 | Down: 29 | New: 23
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Needham & Company maintains a 'Buy' on Velti (NASDAQ: VELT) price target of $20.00.

Analyst, Scott Zeller, said, "The Velti MarQ results beat on revenue, with adj EBITDA in the middle of the guided range, and CY12 revenue was upped modestly. We also note revenue performance was strong across all geographies, including Europe (ex-UK), which grew +29% y/y and addresses the revenue exposure to PIIGS countries."

"...We believe investors want to see improvement in collections, particularly given the recent comments from management suggesting increased North American revenue, and the MIG acquisition, should improve the quality of receivables at VELT. Cash balance declined 46% q/q from $76m to $41m, as VELT was negative cash from operations, in a continuing trend; that said, guidance for positive cash from operations by 3Q12 and positive FCF from operations by 4Q12 was reiterated. In our view, VELT remains an undervalued growth story in Mobility."

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 $8.60 yesterday.

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