Roth Capital analyst Darren Aftahi maintained a Buy rating on Marchex (MCHX) yesterday and set a price target of $8. The company’s shares closed yesterday at $4.31.
Aftahi observed:
“We expect modestly better 2Q results when MCHX reports 2Q19 results (TBD), with analytics revenue expected to comprise the majority of sales (~51%). We remain focused on organic analytics growth rates (double digits) and further traction with OEMs or new products that can be layered on to the analytics platform to facilitate faster adoption and scale. Maintain Buy as shares continue to remain undervalued in our view. 2Q expectations. We model for 2Q sales/adj. EBITDA/non-GAAP EPS of ~ $25.0M/$1.0M/$0.00, which is in-line with revenue guidance of ~$25+ and EBITDA guidance of ~$1.0M+. We model for topline growth of ~23.6% y/y, accelerating ~300bps q/q and up from ~8% declines a year ago. We look for analytics revenue of ~$12.8M, or 51% of revenue, which implies ~55% y/y growth, and up from ~12% a year ago (although inclusive of acquisitions).”
According to TipRanks.com, Aftahi is a 5-star analyst with an average return of 15.7% and a 52.4% success rate. Aftahi covers the Technology sector, focusing on stocks such as Digital Turbine Inc, The Meet Group Inc, and Mitek Systems Inc.
Currently, the analyst consensus on Marchex is a Moderate Buy with an average price target of $7.50.
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Based on Marchex’s latest earnings release for the quarter ending March 31, the company reported a quarterly GAAP net loss of $1.3 million. In comparison, last year the company had a GAAP net loss of $658K.
Based on the recent corporate insider activity of 23 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of MCHX in relation to earlier this year.
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Marchex, Inc. is a call analytics company, which engages in provision call solutions for marketers, sales and developers. It offers Marchex call analytics platform, Marchex call marketplace, and Marchex local leads products to automotive, travel and hospitality, telecommunications, insurance, home services, digital agencies, healthcare, education and careers, financial services, legal, real estate, and senior living industries. It delivers data insights and incorporate artificial intelligence (AI)-powered functionality that drives insights and solutions to help companies find, engage, and support its customers across voice and text-based communication channels. The company was founded by Russell C. Horowitz, Ethan A. Caldwell, Peter Christothoulou, and John Keister on January 17, 2003 and is headquartered in Seattle, WA.
