UPDATE: UBS Starts Mindbody (MB) at Buy

UBS initiated coverage on Mindbody (NASDAQ: MB) with a Buy rating and a price target of $19.00.

Analyst Brent Thill commented, "MINDBODY (MB) sells a suite of cloud-based business management applications to SMB health and wellness services companies. Despite the SMB segment's higher rates of churn and varying IT needs, we believe that MB's vertically focused application suite will allow for platform stickiness that maximizes lifetime customer value at a reasonable acquisition cost. The company's consumer facing Connect app, which allows consumers to schedule and manage health activities, should create network effects and help bolster growth in new subscribers while the integrated payments solution (37% of revs in 2014 but MB's fastest growing segment at +52% y/y) should create platform synergies, as customers benefit from integrating financial components of their businesses to operational components. Similar to GWRE for insurance, we believe that MB is the only vendor focused on building a fully featured platform for health and wellness businesses – with an underpenetrated $9-10B greenfield TAM, MB's growth runway looks clear and open for the foreseeable future. Buy."

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

Shares of Mindbody closed at $13.36 yesterday.

You May Also Be Interested In

• Freedom Broker Upgrades Alico Inc. (ALCO) to Buy
• On Holding AG (ONON) PT Lowered to $60 at BTIG
• SandRidge Energy (SD) PT Lowered to $14 at Freedom Broker