Needham & Company Maintains a 'Buy' on Velti (VELT); Lowering Price Target
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Price: $0.06 --0%
Rating Summary:
3 Buy, 7 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
3 Buy, 7 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Needham & Company maintains a 'Buy' on Velti (NASDAQ: VELT) price target lowered from $24 to $17.
Needham analyst says, "We attended Velti’s analyst day in NYC last week and were encouraged by management’s reiteration of SeptQ and CY11 guidance, despite the headlines in the press regarding a tough macro climate. Presentations by the management team gave us confidence that VELT is a leader in a market which has vast potential (mobile marketing and advertising), and could grow at 21% CAGR, as suggested by IDC. We believe analyst day addressed many investor questions, and should allay concerns about such issues as: Europe/macro, the AAPL UDID effect, and M&A speculation. Below in our note, we enumerate the investor concerns from recent weeks and the responses which should give investors confidence. It is our view that VELT is a young company in a new market (mobile campaigns) and is still in the process of defining their market opportunity with investors – a process which, in the current macro climate, has been difficult. Given�the current macro climate, we are adjusting our price target methodology to focus on EV/revenue, rather than EV/EBITDA.
For more ratings news on Velti click here and for the rating history of Velti click here.
Shares of Velti closed at $7.35 yesterday.
Needham analyst says, "We attended Velti’s analyst day in NYC last week and were encouraged by management’s reiteration of SeptQ and CY11 guidance, despite the headlines in the press regarding a tough macro climate. Presentations by the management team gave us confidence that VELT is a leader in a market which has vast potential (mobile marketing and advertising), and could grow at 21% CAGR, as suggested by IDC. We believe analyst day addressed many investor questions, and should allay concerns about such issues as: Europe/macro, the AAPL UDID effect, and M&A speculation. Below in our note, we enumerate the investor concerns from recent weeks and the responses which should give investors confidence. It is our view that VELT is a young company in a new market (mobile campaigns) and is still in the process of defining their market opportunity with investors – a process which, in the current macro climate, has been difficult. Given�the current macro climate, we are adjusting our price target methodology to focus on EV/revenue, rather than EV/EBITDA.
For more ratings news on Velti click here and for the rating history of Velti click here.
Shares of Velti closed at $7.35 yesterday.
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