Citi Maintains 'Buy' Rating on Omniture (OMTR), Adds Stock to 'Top Picks Live' List; Potential Takeout Candidate

August 20, 2008 9:24 AM EDT

Citi maintains 'Buy' rating on Omniture Inc (Nasdaq: OMTR) and adds stock to Top Picks Live list.

Citi analyst says, "The stock is down 47% YTD despite successfully navigating the crucial first two qtrs post the acquisition of their largest standalone competitor. During this period, the company has hit the high end of rev guid for both Q1 and Q2 while at least meeting EPS guid and nearly doubling op margins from FY07’s 5%...We believe downside is limited to the recent low of ~$16.50 (-7%; 2.8x EV/’09 rev), while the stock can – quickly if typical software seasonality plays out – move into the mid-$20s (~40%; ~4xEV/CY09 rev) on the way to achieving our 12-month $30 PT. Meanwhile, OMTR in the L-T is a potential takeout candidate as the online optimization leader."

Omniture, Inc. (Omniture) is a provider of online business optimization software.

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