- Deutsche's Lloyd Walmsley is reiterating a Buy and $65 PT for Trulia (TRLA +4.3%), and declares the online/mobile real estate platform has one of "the most compelling valuations relative to growth" among small-cap Internet names.
- Walmsley considers a valuation of 11.9x 2015E EBITDA to be inexpensive, especially since slower-growing Move (MOVE +0.5%) is trading at 12.6x 2015E EBITDA. "To get to a peer group multiple on 2015 would imply zero margin expansion for two years!"
- He also thinks Trulia continues to perform well in the face of a cooling housing market, doesn't expect the company to shell out for a TV ad campaign or acquisition until recently-acquired Market Leader shows more traction.
- Rival Zillow (Z +2.4%), which has a habit of moving in the same direction as Trulia, is also rallying. Both companies are up sharply on the year, but are also well off their September highs.
Trulia rallies following bullish Deutsche note; Zillow also up
Dec 13 2013, 13:31 ET