Jefferies Comments on omScore (SCOR), Management Highlights Margin Growth Potential
Tweet
Share
E-mailGet Alerts SCOR Hot Sheet
Price: $6.20 --0%
Rating Summary:
9 Buy, 11 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 10 | Down: 16 | New: 19
Rating Summary:
9 Buy, 11 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 10 | Down: 16 | New: 19
Join SI Premium – FREE
Jefferies is reiterating its Buy rating and $27 price target on shares of comScore (NASDAQ: SCOR) following the analyst day.
At the meeting, the company introduced new product capabilities and offered their plan to balance profits with future investments.
The company plans on introducing its validated Gross Ratings Points on October 15. If this proves to be successful, the firm believes that it could prove to be major point of differentiation for the company.
Management indicated that its long-term margin guidance of 28-32 percent may prove to be conservative and that substantial margin growth is expected beginning 2012 and beyond. The margin expansion is largely due to cost savings.
The company did not provide any long-term revenue guidance, but the firm notes that at its analyst day last year it issued a revenue guidance of 23-27 percent growth. The third quarter looks to experience organic revenue growth of 21.3-22.7 percent, with an additional 6 percent coming due to acquisitions.
An analyst at Jefferies comments, "We've also heard from two of the company's clients, who as we expected spoke highly of SCOR and of their relationship with the company. Comcast's (Nasdaq: CMCSA) contract value has increased at a 66% CAGR from 2007 -2011, while Starcom stressed industry leadership. Both companies were highly supportive and noted that comScore is a crucial element that helps them make better decisions, and drive revenues."
For more ratings news on comScore click here and for the rating history of comScore click here.
Shares of comScore closed at $15.85 yesterday.
At the meeting, the company introduced new product capabilities and offered their plan to balance profits with future investments.
The company plans on introducing its validated Gross Ratings Points on October 15. If this proves to be successful, the firm believes that it could prove to be major point of differentiation for the company.
Management indicated that its long-term margin guidance of 28-32 percent may prove to be conservative and that substantial margin growth is expected beginning 2012 and beyond. The margin expansion is largely due to cost savings.
The company did not provide any long-term revenue guidance, but the firm notes that at its analyst day last year it issued a revenue guidance of 23-27 percent growth. The third quarter looks to experience organic revenue growth of 21.3-22.7 percent, with an additional 6 percent coming due to acquisitions.
An analyst at Jefferies comments, "We've also heard from two of the company's clients, who as we expected spoke highly of SCOR and of their relationship with the company. Comcast's (Nasdaq: CMCSA) contract value has increased at a 66% CAGR from 2007 -2011, while Starcom stressed industry leadership. Both companies were highly supportive and noted that comScore is a crucial element that helps them make better decisions, and drive revenues."
For more ratings news on comScore click here and for the rating history of comScore click here.
Shares of comScore closed at $15.85 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Deutsche Bank Downgrades Workday (WDAY) to Hold
- Arthur J. Gallagher (AJG) PT Raised to $300 at Argus
- Wedbush Starts Immunic Inc. (IMUX) at Outperform
Create E-mail Alert Related Categories
Analyst CommentsRelated Entities
Jefferies & CoSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
