Collins Stewart Starts Rentrak (RENT) at Buy; Potential Take-out Candidate
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Price: $3.80 +3.83%
Rating Summary:
6 Buy, 13 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
6 Buy, 13 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Collins Stewart initiates coverage on Rentrak (NASDAQ: RENT) with a Buy.
Collins analyst says, "With RENT‟s leading position in gathering and analyzing STB data; a clean Balance Sheet; and EBITDA positive operations, we believe it is an ideal acquisition target. For recently IPO‟d Nielsen, acquiring RENT would enable them to be more in control of the direction of the TV measurement industry by becoming the leading STB data aggregator. Nielsen could introduce RENT‟s system as a complementary rating currency in an effort to ease concern among networks and advertisers that their ratings no longer reflect true viewership. Nielsen could further pacify advertisers growing demand for increasing ROI by adding an ON Demand element to their ratings currency."
"Financially, acquiring RENT even at a 35% premium to current levels would represent just 4% of Nielsen‟s market cap. Moreover, we expect it would be P/E neutral. Furthermore, we believe that an acquisition of RENT would enable Nielsen to continue to de-lever, a financial objective of the company. Acquiring RENT for cash at a 35% premium would nominally increase Nielsen‟s Debt ratio: from 4.3x to 4.34x."
For more ratings news on Rentrak click here and for the rating history of Rentrak click here.
Shares of Rentrak closed at $19.18 yesterday.
Collins analyst says, "With RENT‟s leading position in gathering and analyzing STB data; a clean Balance Sheet; and EBITDA positive operations, we believe it is an ideal acquisition target. For recently IPO‟d Nielsen, acquiring RENT would enable them to be more in control of the direction of the TV measurement industry by becoming the leading STB data aggregator. Nielsen could introduce RENT‟s system as a complementary rating currency in an effort to ease concern among networks and advertisers that their ratings no longer reflect true viewership. Nielsen could further pacify advertisers growing demand for increasing ROI by adding an ON Demand element to their ratings currency."
"Financially, acquiring RENT even at a 35% premium to current levels would represent just 4% of Nielsen‟s market cap. Moreover, we expect it would be P/E neutral. Furthermore, we believe that an acquisition of RENT would enable Nielsen to continue to de-lever, a financial objective of the company. Acquiring RENT for cash at a 35% premium would nominally increase Nielsen‟s Debt ratio: from 4.3x to 4.34x."
For more ratings news on Rentrak click here and for the rating history of Rentrak click here.
Shares of Rentrak closed at $19.18 yesterday.
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