Continuing with the bargain-hunting theme, consumers are increasingly searching the Web for retailer coupons. RetailMeNot (SALE - Get Report) of Austin, Texas, is a third-party provider of digital coupons in a relatively nascent market.
The global company owns a portfolio of coupon and deal-related Web sites in the U.S., Canada, Germany, France and the Netherlands, enabling consumers across to find hundreds of thousands of digital coupons and offers from retailers and brands, according to a company description.The stock is up 11% since the company listed shares on the Nasdaq in July. Shares rose 2.2% to $31.52 on Monday. "We continue to believe it is one of the best positioned in the large, under-penetrated digital couponing space and that there is meaningful upside from current stock price levels," according to Jefferies analyst Brian Pitz. He reiterated his buy rating on the stock in an Nov. 6 research note, following the company's third-quarter earnings. Pitz has a 12-month target price of $40. The holiday season brings plenty of opportunity for RetailMeNot. For one, the success of its growing mobile app could provide momentum to RetailMeNot in selling its mobile coupon platform to more bricks-and-mortar retailers next year. "As the leading digital coupon platform, RetailMeNot is well positioned to benefit from a more promotional retail environment combined with a more cautious consumer," Morgan Stanley analysts wrore in an Oct. 31 note. "Additionally, the company is rolling out a mobile app through which retailers can run campaigns to drive in-store purchasing. While, RetailMeNot is early in this effort, the mobile app has been downloaded