William Blair Maintains Outperform On RetailMeNot Following Investor Meetings
In a research report issued yesterday, William Blair analyst Ralph Schackart maintained an Outperform rating on RetailMeNot Inc (NASDAQ:SALE), following investor meetings. No price target was assigned.
Schackart wrote, “RetailMeNot continues to focus on diversifying its traffic sources and, in turn, become less reliant on search engines. Currently, organic search represents more than 60% of its traffic. Over the long term, RetailMeNot would prefer that less than 50% of its traffic was from organic search. The company believes taking steps such as increasing its mobile app installed base, creating a personalized e-mail experience, and spending on brand marketing will assist in diversifying its traffic sources.”
Schackart believes, ” That the current valuation at 8.3 times our 2015 EBITDA estimate could be attractive to investors who can stomach near-term volatility as the company continues to work through the decline in organic search traffic. RetailMeNot has successfully navigated algorithm changes in the past. While management feels confident it can navigate the latest change, the timing is uncertain.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Ralph Schackart has a total average return of 21.2% and a 70.8% success rate. Schackart has a -6.9% average return when recommending SALE, and is ranked #325 out of 3274 analysts.