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Trulia (TRLA) is Cheap, Says Deutsche Bank

December 13, 2013 9:22 AM EST Send to a Friend
Get Alerts TRLA Hot Sheet
Price: $61.50 --0%

Rating Summary:
    3 Buy, 8 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 5 | Down: 11 | New: 24
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Deutsche Bank maintained a Buy rating on Trulia (NYSE: TRLA) with a price target of $55. Analyst Lloyd Walmsley thinks Trulia is among the cheapest internet names, and he ties weakness to sentiment rather than fundamentals.

"We see Trulia shares as among the most compelling valuations relative to growth in smid-cap Internet. We view recent weakness as sentiment driven, not fundamental. We believe the business continues to perform well, despite housing data cooling, and do not expect Trulia to jump into TV ad spending or make an acquisition before showing more traction from Market Leader," said Walmsley.

"Trulia shares trade at an inexpensive 11.9x EBITDA on 2015, a year in which we forecast the company will almost double it’s EBITDA growing 78% Y/Y. This is cheaper than Move Inc. (Nasdaq: MOVE) trading at 12.6x on 2015E EBITDA (Factset consensus), despite our (conservative) forecast for Trulia to grow revenue 30% in 2015 versus FactSet consensus of a mere 11% for Move. To get to a peer group multiple on 2015 would imply zero margin expansion for two years!" he said.

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

Shares of Trulia closed at $29.24 yesterday.




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