Jefferies Raises Price Target on Ancestry.com (ACOM), Q2 Shows Growing Demand

Jefferies is reiterating its Buy rating on shares of Ancestry.com (NASDAQ: ACOM) and is raising its price target by $1 to $43 following solid Q2 results.

The company released its Q2 results with $101.3 million in revenue, EPS of $0.33, and EBITDA of $38.4 million, well ahead of the Street estimates of $99 million, $0.30, and $37 million.

Net subscribers increased as the company added 55 plus thousand new subscribers in Q2 and ended the quarter with 1.67 million total.

ACOM increased its 2011 outlook and released its Q3 guidance which calls for revenue of $102-$104 million and 28 thousand more new subscribers. For the full year, revenue is forecasted to be $398-$402 million, up from its previous estimate of $395-$400 million. Total subscribers are anticipated to be around 1.71-1.13 million.

The firm is increasing its 2011 revenue and EBITDA estimates from $398.4 million and $138.8 million to $402.7 million and $140.2 million. Jefferies is predicting 1.726 million subscribers at the end of 2011 and 2.122 million at the end of 2012. Their current 2011 and 2012 EPS estimates are $1.23 and $1.66.

For more ratings news on Ancestry.com click here and for the rating history of Ancestry.com click here.

Shares of Ancestry.com closed at $40.18 yesterday.

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