NEW YORK (TheStreet) -- comScore (SCOR - Get Report) shares are up 5.49% to $37.43 on Tuesday after being upgraded to "buy" from "neutral" by analysts at Goldman Sachs (GS - Get Report).
The firm set a $41 price target on the shares after noting that the company is in prime position to lead the online advertisement and traffic analysis field.
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TheStreet Ratings team rates COMSCORE INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate COMSCORE INC (SCOR) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we find that the company's return on equity has been disappointing."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Powered by its strong earnings growth of 66.66% and other important driving factors, this stock has surged by 50.25% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
- COMSCORE INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, COMSCORE INC continued to lose money by earning -$0.07 versus -$0.35 in the prior year. This year, the market expects an improvement in earnings ($0.05 versus -$0.07).
- The gross profit margin for COMSCORE INC is currently very high, coming in at 74.96%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -1.01% is in-line with the industry average.
- Net operating cash flow has slightly increased to $19.38 million or 5.18% when compared to the same quarter last year. Despite an increase in cash flow, COMSCORE INC's cash flow growth rate is still lower than the industry average growth rate of 23.16%.
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Internet Software & Services industry and the overall market, COMSCORE INC's return on equity significantly trails that of both the industry average and the S&P 500.
- You can view the full analysis from the report here: SCOR Ratings Report