NEW YORK (TheStreet) -- comScore (SCOR) shares are up 3.1% to $44.51 in early market trading on Tuesday after the digital analytics solutions provider had coverage initiated with a "buy" rating by analysts at SunTrust today. The firm also set a $53 price target on the company's shares.
The firm sees positive growth in the teens until at least 2016 for the company's flagship Media Metrix product, while also noting that the company could be an acquisition target in what SunTrust calls a "necessary, evolving, and growing (double-digit) market for digital and cross-platform advertising audience measurement, analytics, and verification."
The firm's price target represents a potential 19% upside from the stock's current price.
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, revenue growth and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and feeble growth in the company's earnings per share."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- This stock has managed to rise its share value by 65.46% over the past twelve months. 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.
- SCOR's revenue growth trails the industry average of 28.2%. Since the same quarter one year prior, revenues rose by 14.7%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Although SCOR's debt-to-equity ratio of 0.16 is very low, it is currently higher than that of the industry average. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.89 is somewhat weak and could be cause for future problems.
- 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 3876.8% when compared to the same quarter one year ago, falling from -$0.08 million to -$3.26 million.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. 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