Monday, March 18, 2013

Why ValueClick Shares Popped

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of ValueClick (NASDAQ: VCLK  ) have popped today by as much as 11% after the company received an analyst upgrade.

So what: Jefferies boosted its rating on ValueClick from "hold" to "buy," while also increasing its price target from $23 to $35. After ValueClick's analyst day, Jefferies is encouraged by the company's "unique tech stack" since CEO John Giuliani displayed a clear sense of how the business is evolving. Giuliani has been CEO since December.

Now what: ValueClick has data on 200 million people that it leverages to deliver ads, and ValueClick is focusing more heavily on a customer-centric model to monetize that data. Mobile ads are a big opportunity for ValueClick as consumers increasingly access the web from mobile devices, and ValueClick is well positioned for that shift, according to Jefferies. Lake Street Capital Markets also initiated coverage on ValueClick today with a "buy" rating and $40 price target.

Interested in more info on ValueClick? Add it to your watchlist by clicking here.

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