Broadpoint AmTech Initiates Coverage on United Online (UNTD) with a Buy; Rock Bottom Valuation Offers Attractive Risk/Reward.

June 1, 2009 11:23 AM EDT

Broadpoint AmTech initiates coverage on United Online (Nasdaq: UNTD) with a Buy. Price target $12.

Broadpoint analyst says, "UNTD's online assets include Classmates.com and the recently acquired FTD business. With extensive online marketing expertise, UNTD has proven that a successful online business model can be built on monetizing non-search traffic by charging fees for premium access, a trend we believe will soon be followed by others in the industry. We expect its recently acquired FTD business to benefit from UNTD's marketing expertise, both online and offline. In our view, FTD's transaction platform provides a new monetization engine for the combined company. We believe its solid financial performance and the intrinsic value of its assets are not reflected in the shares."

To see more analyst ratings on UNTD Click Here.

"We believe that many investors have yet to recognize the increasing value of organic traffic and its monetization potential, including UNTD's online assets."

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