Wunderlich Securities Notes RetailMeNot (SALE) Lock-Up Expired

Wunderlich Securities analyst Blake Harper notes RetailMeNot Inc. (NASDAQ: SALE) has a final lock up expiration today although the firm maintained a Buy rating and price target of $44.00. The firm also views the company's valuation favorable versus recent IPO Coupons.com (NYSE: COUP).

Harper comments, "RetailMeNot, Inc. (SALE) has a final lock up expiration today that could prompt additional profit taking although we believe it could also provide better entry points for growth investors. We also compare SALE's valuation to newly public Coupons.com and we view SALE as a more attractive investment given its growth, profitability, and valuation. SALE grew sales 45% Y/Y in FY13 and is trading at 9x EV/S compared to COUP which grew 50% and is trading at 11x EV/S. SALE is also more profitable, with 38% EBITDA margin, compared to 1% for COUP, although it is expected to improve double digits in FY14. While it is convenient to compare the two stocks, there is a clear distinction between their businesses, with COUP in consumer packaged goods (CPGs) and SALE in other retail categories."

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

Shares of RetailMeNot Inc. closed at $39.43 yesterday.

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