Needham & Company Reiterates Buy on TechTarget (TTGT); Says The Worst Has Past

Needham & Company maintained a Buy rating on TechTarget, Inc. (NASDAQ: TTGT), and cut the price target to $12.00 (from $14.00), following the company's 4Q earnings report. TTGT reported revenue of $29.4M, slightly below expectations of $30.3M. FX headwinds reduced revenue growth by 1.1%.

Analyst Kerry Rice commented, "We believe the worst is past as TechTarget heads into 2016. While we expect the strong dollar to persist, we believe the company's top customers should begin to spend more freely as they recalibrate to these stronger dollar levels. Moreover, many of the enterprise strategic transactions that kicked off in 2015 should be completed and those companies should begin refocusing on increasing revenue and consequently marketing. We are also encouraged by the growth opportunities for IT Deal Alert, which should grow 40% in FY16, with the potential to increase 50% with a more rapid adoption of recently launched Priority Engine and Research products. Finally, we highlight the significant leverage in TTGT's model, which we estimate should translate into EBITDA margin expansion of 260 bps in 2016."

For an analyst ratings summary and ratings history on TechTarget, Inc. click here. For more ratings news on TechTarget, Inc. click here.

Shares of TechTarget, Inc. closed at $6.82 yesterday.

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