Omniture (OMTR) shares are looking higher again today after jumping $1.73, or 8%, yesterday, after CNBC’s Jim Cramer speculated on Friday that the company could be the next to be acquired in the recent feeding frenzy in the online advertising sector. He said the company could be a good target for Microsoft (NASDAQ:MSFT), Google (NASDAQ:GOOG) or Yahoo (YHOO), and that if awarded a comparable multiple to aQuantive (AQNT), which is being acquired by Microsoft, then the stock could be worth as much as $35 a share.
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: