Bankrate: Sub-Prime Mortgage Worries Are Overdone
Mark Mahaney, an analyst at Citigroup, notes that the stock dropped 25% through Thursday night from early February on concerns about the impact of the sub-prime crisis. But he thinks the worries are overdone, and Friday raised his rating on the stock to Buy from Hold.
Mahaney lists four reasons for his upgrade:
1. Attractive risk-reward.
2. Over-stated exposure to sub-prime market. Non-mortgage loans are more than half of revenue, sub-prime is about 5%, so “1%-2% direct risk.”
3. Number of advertisers on its rate tables up 2x over past two years. Recent display ads from Merrill (MER), Sony (SNE), Schwab (SCHW), Vanguard (VNQ).
4. Sees three material new growth drivers in Bankrate Select (improved lead generation tool); behavioral targeting and paid search. “Combined, they have the potential to re-accelerate already solid fundamentals."
Mahaney has a target price on the stock of $44. Friday, the stock was up $1.32 at $35.18.

Get Seeking Alpha Free Stock Alerts by Email!
Get Free Stock Alerts by Email!
ETFs In Focus
-
Editor's Picks
-
Most Popular
- ETF Insights: The New Hard Assets Producers ETF
- Why Airline Stocks Are So Often Bad Investments
- The Chinese Oil Problem
- Wildfires, Financial Crises, and Type Conversions in Markets
- The Most Important Fact To Know About Oil Investing
- New Currency ETN from Barclays
- Full list of Editor's Picks »
- Three Reasons the Solar Sell-off May Be in the Early Innings »
- Five Reason Steve Ballmer Thinks Apple's a Buy »
- What's in Store for the Fertilizer Industry? »
- Apple to Reveal Mysterious Product Transition on September 9th »
- Wall Street Breakfast: Must-Know News »
- Wall Street Breakfast: Must-Know News »
- Precious Metals Manipulation: Lawyers Prepare for Battle »
- Why Commodities May Be Nearing a Turning Point »
- Oil: The Inconvenient Truth »
- Sarah Palin: Wall Street's Candidate »
- 2 Top Energy Sector Bets »
-
Long Ideas
-
Short Ideas
-
Cramer's Picks
- Leucadia's Key to Success
- China Natural Gas: Growth Appears Certain
- Can TRW Automotive Escape the Michigan Mess?
- Things Aren't Good - Fast Money Recap (9/4/08)
- ETFs That Help You Sleep Better at Night
- ETF Update: Alternative Energy and the Power Grid
- ETF Update: Healthcare Has a Heartbeat; A Good Time for Muni-Bond ETFs?
- Hansen Natural: Amazing Growth Stock Now Attractive to Value Investors
- MasterCard: Driven by Global Growth
- U-turn: Uranium Begins Recovery Phase
- Full list of Long Ideas »
- Short Interest Rising in Tesoro; Shorts Covering Airline Positions
- Harbinger Capital: Cut Short
- Not Much Meat on Pilgrim's Pride's Bones
- Salesforce.com: Demystifying the Force
- Should We Listen to Boone Pickens on Oil?
- Energy Conversion Devices: Ridiculously High Valuation
- Three Reasons the Solar Sell-off May Be in the Early Innings
- Is the Market Rolling Over?
- Solar and Oil, Part Deux
- Financial vs. International ETFs: Which Bear is Grizzlier?
- Full list of Short Ideas »
- Cramer Sees the Light - Cramer's Mad Money (9/4/08)
- Keep Buying Big Brown - Cramer's Lightning Round (9/4/08)
- Don't Buy These Bonds - Cramer's Stop Trading! (9/4/08)
- Loss of Integrity - Cramer's Mad Money Recap (9/3/08)
- Not Off the RIMM - Cramer's Lightning Round (9/3/08)
- Unbelievable Moves - Cramer's Stop Trading! (9/3/08)
- The Rally was the Real Deal - Cramer's Mad Money (9/2/08)
- Crushed Unnecessarily - Cramer's Lightning Round (9/2/08)
- A Chance to Sell - Cramer's Stop Trading! (9/2/08)
- Faith Doesn't Cut It - Cramer's Mad Money (8/29/08)
- Full list of Cramers Picks »
Trading Center
Hedge Fund Jobs
Job Seekers: Search jobs by category, get job alerts by email or live feed, apply online See full list of jobs »
Employers: See all recruitment options, get applications online or by email Post a job »



