Needham & Company Reiterates a 'Buy' on Velti (VELT) Following Solid SeptQ & Outlook
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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 reiterates a 'Buy' on Velti (NASDAQ: VELT) price target of $17.00.
Needham analyst says, "Velti beat on revenue and raised guidance for CY11 on both an “organic” measure as well as when including acquired revenue; adjusted EBITDA, a closely watched metric after a JuneQ surprise, was above our estimates. Not surprisingly, VELT announced another acquisition concurrent with SeptQ, for private Mobile Interactive Group (MIG) out of the UK for $25m; we believe this accretive and cashflow positive acquisition will benefit VELT by taking out a competitor in Europe and adding scale and cost efficiencies to VELT. The closely watched “3rd party cost” expense line was a bit high in 3Q at 36% of revenue, yet forward guidance for CY12 suggested “high 20s/low 30s”, which is encouraging. As Air2Web and MIG deals have both closed, we are adjusting DecQ and CY12 revenues upwards. Velti has posted strong results for SeptQ in a weak macro environment where fears of European decline impacted VELT, who derives over 60% of revenue from Europe and is relying upon a large 4Q revenue ramp. We believe the VELT revenue growth fundamentals remain solid; that said, we believe VELT still needs to prove to investors that it can control costs in CY12 and drive EBIDTA growth."
For an analyst ratings summary and ratings history on Velti click here. For more ratings news on Velti click here.
Shares of Velti closed at $8.75 yesterday.
Needham analyst says, "Velti beat on revenue and raised guidance for CY11 on both an “organic” measure as well as when including acquired revenue; adjusted EBITDA, a closely watched metric after a JuneQ surprise, was above our estimates. Not surprisingly, VELT announced another acquisition concurrent with SeptQ, for private Mobile Interactive Group (MIG) out of the UK for $25m; we believe this accretive and cashflow positive acquisition will benefit VELT by taking out a competitor in Europe and adding scale and cost efficiencies to VELT. The closely watched “3rd party cost” expense line was a bit high in 3Q at 36% of revenue, yet forward guidance for CY12 suggested “high 20s/low 30s”, which is encouraging. As Air2Web and MIG deals have both closed, we are adjusting DecQ and CY12 revenues upwards. Velti has posted strong results for SeptQ in a weak macro environment where fears of European decline impacted VELT, who derives over 60% of revenue from Europe and is relying upon a large 4Q revenue ramp. We believe the VELT revenue growth fundamentals remain solid; that said, we believe VELT still needs to prove to investors that it can control costs in CY12 and drive EBIDTA growth."
For an analyst ratings summary and ratings history on Velti click here. For more ratings news on Velti click here.
Shares of Velti closed at $8.75 yesterday.
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