Wells Fargo Starts Velti (VELT) at Outperform; Building Margin and Believe VELT is Poised to Turn Cash Flow Positive

Wells Fargo initiates coverage on Velti (NASDAQ: VELT) with a Outperform. PT range $11-$12.

Wells analyst says, "In conjunction with our launch of the Mid-Cap Digital Media sector, we also launched coverage of WebMD (Nasdaq: WBMD), AOL (NYSE: AOL), IAC/Interactive (Nasdaq: IACI), ValueClick (Nasdaq: VCLK), and Demand Media (NYSE: DMD). We assign the sector an Overweight rating as we believe strong growth opportunities remain for companies that are well positioned to capture the continuing migration of traditional media dollars to online and mobile channels. While we view the sector favorably, we are selective with our picks based on strategic positioning, recognizing that competition for online and mobile advertising spending is fierce and the structural landscape is evolving rapidly."

"We believe mobile marketing's moment is (finally) here. After what we view as
more than a decade of unfulfilled promise, we believe rising smartphone adoption and data network speeds are propelling the mobile marketing channel into the consideration set of every major marketer. While we are not generally believers in "time spent" theories of media planning, we believe the growth rate of mobile application usage has rapidly altered marketer views of the mobile channel. Mobile's reach has expanded, but we believe the flexibility and utility of mobile marketing channels is equally, if not more, compelling."

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

Shares of Velti closed at $8.83 yesterday.

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