Final lockup expiration pressures RetailMeNot; Wunderlich defends

|By:, SA News Editor

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 (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, is trading at 11x EV/sales after having grown 50%. He also observes RetailMeNot's 38% EBITDA margin dwarfs's 1%; the latter figure is expected to rise to a double-digit level this year.