Jefferies Raises Price Target on Velti (VELT), Growth Much Faster Than Previously Expected
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Price: $0.06 --0%
Rating Summary:
3 Buy, 7 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
3 Buy, 7 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Jefferies is reiterating their Buy rating on shares of Velti (NASDAQ: VELT) as the company continues to grow at a rapid pace and can prove it with the sales. The firm is raising their price target on the company to $18.50.
13% of the company's total revenue is from the America, where it only accounted for 3% in the first nine months of 2010. The company is now currently working with three of the five top U.S. advertising agencies, which Jefferies believes could raise that percentage to 15-20% by the end of the year.
The firm reports that, "DSO: a major investor concern were Q3 DSO of 233, but they improved to 107 in Q4. They should eventually fall below 100 as Velti's U.S. exposure increases, as U.S. customers tend to have faster payment cycles."
The company's gross margin for their 4Q came in at 64.5% when the firm was anticipating that it would be much higher at 71.11%. Management at Velti comment that the miss due to a couple of large campaigns in emerging markets and a great number of performance-based campaigns in all their markets.
Velti released their 1Q guidance with a revenue range of $26-$27 million and an adjusted EBITDA of breakeven. This is ahead of the firms previous expectations of $23 million in revenue and a slight loss for adjusted EBITDA.
Jefferies is raising their 2011 and 2012 EPS estimates to $0.34 and $0.64 from $0.30 and $0.57.
For more ratings news on Velti click here and for the rating history of Velti click here.
Shares of Velti closed at $12.16 yesterday.
13% of the company's total revenue is from the America, where it only accounted for 3% in the first nine months of 2010. The company is now currently working with three of the five top U.S. advertising agencies, which Jefferies believes could raise that percentage to 15-20% by the end of the year.
The firm reports that, "DSO: a major investor concern were Q3 DSO of 233, but they improved to 107 in Q4. They should eventually fall below 100 as Velti's U.S. exposure increases, as U.S. customers tend to have faster payment cycles."
The company's gross margin for their 4Q came in at 64.5% when the firm was anticipating that it would be much higher at 71.11%. Management at Velti comment that the miss due to a couple of large campaigns in emerging markets and a great number of performance-based campaigns in all their markets.
Velti released their 1Q guidance with a revenue range of $26-$27 million and an adjusted EBITDA of breakeven. This is ahead of the firms previous expectations of $23 million in revenue and a slight loss for adjusted EBITDA.
Jefferies is raising their 2011 and 2012 EPS estimates to $0.34 and $0.64 from $0.30 and $0.57.
For more ratings news on Velti click here and for the rating history of Velti click here.
Shares of Velti closed at $12.16 yesterday.
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