Brent Thill, an analyst at Citigroup, wrote this morning that he agrees that the advertising analytics company “is a strong takeover candidate at some point,” he says he does not believe there is a near-term deal in the works. He also notes that with the stock up 59% year-to-date and 23% over the past two months, and with no near-term buyout likely, “OMTR is now faced with higher expectations for the core organic business.”
Thill says he thinks the company will beat its June quarter guidance of $32 million to $33 million in revenue and EPS of between break-even and a penny. He also thinks the company will raised ‘07 revenue growth guidance from the current $138 million to $140 million to over $140 million.
Thill advises buying the stock on a pullback; he thinks the stock could be worth $30-$35 a share in a takeover.
OMTR 1-yr chart: