Cantor Cuts AOL Price Target Following 3Q:14 Results; Still Sees 16% Upside

Cantor analyst Youssef Squali reiterated a Buy rating on AOL Inc (NYSE:AOL) with a $48 price target, which represents a potential upside of 16% from where the stock is currently trading.

Squali explained, “For the second quarter in a row, growth in AOL Networks (, programmatic, etc.) drove solid top-line performance, with some help from Membership. However, Brand Group display advertising revenue was weaker than expected and adj. OIBDA slightly missed Street expectations on higher TAC and operating expenses. We continue to like AOL’s focus on non-commoditized areas of the marketplace (Programmatic and video), and believe valuation doesn’t reflect the growing strength of AOL Networks over time. Remaining repurchase authorization of $110M should also support the shares ST.”

According to, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Youssef Squali has a total average return of 27.9% and a 69.8% success rate. Squali has a -1.8% average return when recommending AOL, and is ranked #5 out of 3364 analysts.

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