ValueClick (VCLK) shares are higher Thursday morning after Citigroup’s Mark Mahnaey raised his rating on the stock to Buy from Hold. He maintains a $30 price target on the stock.
Mahaney notes that the stock recently corrected 14%, providing “a great entry point for a core Net advertising name.” He provides five reasons for his upgrade:
- One of the best plays on Net advertising’s secular growth, with #1 independent ad network, #1 affiliate marketing company and #1 independent ad serving company, plus a top comparison shopping business.
- Signs indicate lead generation segment is stabilizing.
- FTC probe of lead generation sector may be close to conclusion.
- Valuation provided attractive risk-reward.
- VCLK remains acquisition candidate, with few independent Internet ad companies.
VCLK Thursday is up $1.27, or 5.9%, at $22.91.