FBR Capital Starts MDC Partners (MDCA) at Outperform

FBR Capital initiates coverage on MDC Partners (NASDAQ: MDCA) with a Outperform rating and a price target of $29.00.

Analyst William Bird comments, "MDC is a small-cap growth play in the ad agency space which we think is capable of outgrowing its peers, based on share gains from a small base, its digital-centric approach, and an international greenfield opportunity. We believe that the market is mispricing MDC's business stability, potential to increment EPS through potential M&A, and differentiated tax assets versus peers. Our $29 price target is based on a target multiple of 11x our 2015E EBITDA, reasonable relative to potential mid-teens-plus EBITDA growth."

For an analyst ratings summary and ratings history on MDC Partners click here. For more ratings news on MDC Partners click here.

Shares of MDC Partners closed at $19.94 yesterday.

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