Topeka Maintains Buy Rating On AOL Following 2Q14 Results
In a research report released this morning, Topeka Capital analyst Victor Anthony maintained a Buy rating on AOL Inc. (AOL) with a $57 price target, following AOL’s revenue report.
Anthony noted, “Revenues of $247.1mm, +54% YoY, were $18.7mm or 8% ahead of our estimate. Organic (ex-Adap.TV) growth accelerated 1% to 20% YoY. Adap.TV’s growth rate was very strong sequentially. OIBDA loss of $5.0mm was slightly higher than our $2.3mm loss estimate, but recall management guided for profitability in the back-half”. Anthony continued, “We now view Platforms as AOL core’s business and investors buying into AOL are buying into a $1B-plus revenue asset that is growing 20%-plus organically, despite intense competition, and is on-track for profitability”.
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Victor Anthony has a total average return of 18.1% and a 62.2% success rate. Anthony has an –1.6% average return when recommending AOL, and is ranked #68 out of 3205 analysts.
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