The Rubicon Project (RUBI) Target Lifted to $25 at Needham & Company

Needham & Company analyst Kerry Rice reiterated a Buy rating and boosted his price target on The Rubicon Project, Inc. (NYSE: RUBI) to $25.00 (from $23.00) following strong Q4 results.

Rice commented, "Rubicon posted Q4 results and 2015 guidance ahead of expectations with strong growth in RTB and early traction with direct orders increasing CPMs 86% y/y and lifting the take rate. We expect CPMs to rise in 2015 with the continued shift to RTB and as direct order volume gains momentum. Given that direct order CPMs are 3x those of RTB, an increase in direct order volume should be a significant positive to CPMs and revenue growth. While we expect ~40% y/y revenue growth in 2015, the company continues to invest in expanding the availability of mobile and video advertising on the exchange and in international markets, which limit margin expansion. We believe RUBI should continue to be rewarded for its innovative technology platform that is leading the trends in automation for the online advertising industry."

The firm raised FY 2015 EPS from $0.03 to $0.21 and FY 2016 EPS was maintained a $0.28.

For an analyst ratings summary and ratings history on The Rubicon Project, Inc. click here. For more ratings news on The Rubicon Project, Inc. click here.

Shares of The Rubicon Project, Inc. closed at $17.88 yesterday.

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