BWS Financial Pounds the Table on Rentrak (RENT)

BWS Financial analyst Hamed Khorsand pounded the table on Rentrak (NASDAQ: RENT), calling the stock a compelling buy, and maintaining his $100 price target. Shares declined following Q3 results.

"Rentrak (RENT) reported fiscal third quarter (December) results that were mostly inline with our forecasts, although commentary during the earnings call has setoff investors to exit the stock without understanding the story," said Khorsand.

"The issue is remarks from management in trying to move away from their 80 percent growth rate as new price increases are being implemented. We believe the long-term story is intact and the reaction the stock is seeing is from the investor base not having patience in understanding how RENT can grow in excess of 3 percent for the next five years," continued the analyst. "The incorporation of Shopcom into RENT’s data analytics ecosystem is of greater value than investors are willing to price into earnings growth. The Shopcom addition gives RENT a leadership position that should enable customers paying higher price points for access to RENT’s data."

"We are pounding the table with high conviction that RENT is a compelling buy at current levels. We are maintaining our price target of $100, however foolish it might seem to the investor based on the current price. The earnings growth over the next few quarters will justify our optimism in the stock," he added.

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

Shares of Rentrak closed at $56.62 yesterday.

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