Velti Of Ireland Poised To Grow With Exploding Mobile Ad Market


The future is bullish for mobile marketing as big companies like Nike (NYSE:NKE) and Toyota (NYSE:TM) increasingly focus on the ad potential of sophisticated mobile devices. Mobile marketing and advertising sales were $13 billion in 2011 and they are growing fast. Revenues are expected to reach $29 billion worldwide in 2014 as consumers acquire smartphones, e-readers, and tablets.

Irish mobile advertising and marketing company Velti (VELT) is in the perfect position to grow with the industry. Due to the recession in Ireland and Europe, Velti is down 14.30% over the last 52 weeks. But sales and earnings are rising and the stock is recovering fast, gaining 76.32% so far in 2012. Earnings-per-share growth has been very strong too, up 48% this year and projected at over 36% next year.

Needham Securities recommended Velti as a buy on March 13 with a target price of $20 per share. Other analysts agree, with a mean target price of $20.26. That's a substantial improvement over the current price of $11.68 per share. The mean analyst recommendation for Velti is 1.30, another bullish sign.

Velti is relatively new to the public markets, having gone public in early 2011, but after some initial stumbles it's looking like a strong long-term play.