Will This Upgrade Help Rocket Fuel (FUEL) Today?

Story updated at 10 a.m. to reflect market activity.

NEW YORK (TheStreet) -- Rocket Fuel (FUEL) was upgraded to "outperform" from "market perform" by BMO Capital Markets Monday.

Shares of Rocket Fuel gained 2.3% to $40.76 in morning trading.

The firm set a price target of $58 for the advertising company. BMO analysts Daniel Salmon, Nirav Modi, and Ygal Arounian said the consensus appears to overlooking the market opportunity in the ad tech space.

"Today, programmatic execution and real-time bidding is only just beginning to approach something resembling maturity in its original addressable market, which is static banner display ads," the analysts wrote. "It is just beginning to enter the mobile space, where Rocket Fuel now generates 19% of its revenue, and in the online video space, real-time bidding is also in its infancy. We also expect more social publishers like Twitter to open up access to real-time bidding. FUEL works with clients via Big Four holding companies, smaller holdcos, independent agencies, and directly; we expect the mix of these relationships to continue evolving as marketers push for more transparency and control. We expect FUEL has heard these calls as well, and its relationships could include more self-serve ones like its partnership with Dentsu; more directto-advertiser roles are possible as well. All of this adds up to lots of levers to grow client spending, even in the face of potential take-rate pressure."

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