RBC Capital Upgrades Quotient Technology (QUOT) to Outperform

November 2, 2016 6:26 AM EDT
Get Alerts QUOT Hot Sheet
Price: $11.65 -2.1%

Rating Summary:
    7 Buy, 2 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 11 | Down: 31 | New: 42
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RBC Capital upgraded Quotient Technology (NYSE: QUOT) from Sector Perform to Outperform with a price target of $15.00 (from $14.00) following In-Line Q3, with very robust and accelerating Transactions growth driven by continued Retailer iQ adoption, offset by some softness in the Media segment.

Analyst Mark Mahaney highlighted the following keys:

1) Transactions Growth – Transactions growth accelerated 15-pts to 69% Y/Y, driven by Digital Paperless, which now accounts for 70% of all transactions. And Retailer iQ transactions were 78% of all Digital Paperless transactions, with the majority occurring on Mobile.

2) Retailer IQ Traction – Quotient now has 19 (vs. 18 in Q2) major retail banners implemented and 13 marketing (in-line with Q2). Quotient also announced it signed a large retailer in the Drug channel onto Retailer iQ in Q3.

3) Margin Trends – Organic Gross Margin of 61% was up an impressive +130 bps Y/Y, while EBITDA margins of 13% were up >900 bps Y/Y and >120 bps Q/Q and the highest EBITDA margins have been since H2:14.

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

Shares of Quotient Technology closed at $10.75 yesterday.



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RBC Capital, Mark Mahaney

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