Move (MOVE) Undervalued, Says Benchmark
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Price: $0.50 --0%
Rating Summary:
2 Buy, 1 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 9
Rating Summary:
2 Buy, 1 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 9
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Benchmark reiterated a Buy rating on Move, Inc. (NASDAQ: MOVE) with a price target of $23.00. Analyst Daniel L. Kurnos thinks the stock is undervalued due to misconceptions and lack of understanding.
"We suspect three key misperceptions are behind the recent weakness: 1) The departure of Errol Samuelson reflects poorly on Move’s outlook or operational abilities; 2) Zillow (Nasdaq: Z) is creating a sustainable competitive advantage that is negatively impacting Move’s growth; 3) Move's brand enhancement campaign equates to Zillow and Trulia's (Nasdaq: TRLA) aggressive customer acquisition\ spend," said Kurnos.
"On the surface, the recent departure of Errol Samuelson from Move to Zillow appeared to represent a material talent loss for Move and a potential thawing of relations between Zillow and the industry. However, while certainly a gifted presenter with strong ties to the NAR, we believe Errol's actual responsibilities had been marginalized at Move over the past several years. Furthermore, we find it strange that the man who railed against Zillow as "the enemy" at NAR events is
now going to work for "the enemy," likely calling his credibility into question," continued Kurnos.
"We believe Move's more modest growth and outlook relative to peers is being attributed incorrectly, at least in part, to theoretical market share gains by Zillow," he added. "Move, Trulia and Zillow all offered 2014 EBITDA outlooks below expectations on ramping marketing spend. However, while we believe Zillow and Trulia are purely spending for traffic gains, we believe Move is continuing to follow its ROI-oriented strategy and will not participate in an aggressive, ROI-negative marketing war."
For an analyst ratings summary and ratings history on Move, Inc. click here. For more ratings news on Move, Inc. click here.
Shares of Move, Inc. closed at $12.33 yesterday.
"We suspect three key misperceptions are behind the recent weakness: 1) The departure of Errol Samuelson reflects poorly on Move’s outlook or operational abilities; 2) Zillow (Nasdaq: Z) is creating a sustainable competitive advantage that is negatively impacting Move’s growth; 3) Move's brand enhancement campaign equates to Zillow and Trulia's (Nasdaq: TRLA) aggressive customer acquisition\ spend," said Kurnos.
"On the surface, the recent departure of Errol Samuelson from Move to Zillow appeared to represent a material talent loss for Move and a potential thawing of relations between Zillow and the industry. However, while certainly a gifted presenter with strong ties to the NAR, we believe Errol's actual responsibilities had been marginalized at Move over the past several years. Furthermore, we find it strange that the man who railed against Zillow as "the enemy" at NAR events is
now going to work for "the enemy," likely calling his credibility into question," continued Kurnos.
"We believe Move's more modest growth and outlook relative to peers is being attributed incorrectly, at least in part, to theoretical market share gains by Zillow," he added. "Move, Trulia and Zillow all offered 2014 EBITDA outlooks below expectations on ramping marketing spend. However, while we believe Zillow and Trulia are purely spending for traffic gains, we believe Move is continuing to follow its ROI-oriented strategy and will not participate in an aggressive, ROI-negative marketing war."
For an analyst ratings summary and ratings history on Move, Inc. click here. For more ratings news on Move, Inc. click here.
Shares of Move, Inc. closed at $12.33 yesterday.
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