Seeking Alpha

Final lockup expiration pressures RetailMeNot; Wunderlich defends

  • RetailMeNot (SALE -5.8%) saw profit-taking following the arrival of its final lockup expiration. Shares remain up 77% from a July 2013 IPO price of $21.
  • Wunderlich's Blake Harper is defending the online coupon/promo code site, arguing its valuation is far more attractive than that of newly-public Coupons.com (COUP +5.8%), which went in the opposite direction today.
  • Harper notes that while RetailMeNot posted 45% sales growth in 2013 and is trading at 9x EV/sales, Coupons.com is trading at 11x EV/sales after having grown 50%. He also observes RetailMeNot's 38% EBITDA margin dwarfs Coupons.com's 1%; the latter figure is expected to rise to a double-digit level this year.
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Comments (1)
  • M4rketTrader
    , contributor
    Comments (14) | Send Message
     
    the market just threw a sale for shares of SALE, get in while the getting is good!
    12 Mar 2014, 07:52 PM Reply Like
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