NEW YORK (TheStreet) -- Bankrate (RATE) stock is advancing 1.54% to $15.18 on Wednesday after analysts at Topeka Capital Markets started coverage of the company with a "buy" rating and a $19 price target.
"Bankrate is a market leader in connecting online consumers with credit card issuers, lenders and senior care providers," analysts said.
The company's conversions could be increased by enhanced mobile user experience and personalization through myBankrate, according to the firm's note.
Another positive is new management and finance teams.
Overall, analysts are bullish as it appears that Bankrate will be able to accelerate growth.
New York-based Bankrate operates as an online publisher, aggregator, and distributor of personal finance content in the U.S. and internationally.
Separately, TheStreet Ratings team rates BANKRATE INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
We rate BANKRATE INC (RATE) 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 expanding profit margins, solid stock price performance and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we find that the growth in the company's net income has been quite unimpressive.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- 46.90% is the gross profit margin for BANKRATE INC which we consider to be strong. 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 -16.61% is in-line with the industry average.
- Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Internet Software & Services industry and the overall market, BANKRATE INC's return on equity significantly trails that of both the industry average and the S&P 500.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Internet Software & Services industry. The net income has significantly decreased by 233.0% when compared to the same quarter one year ago, falling from -$7.02 million to -$23.39 million.
- You can view the full analysis from the report here: RATE