Wunderlich Securities Sees Traffic Data Tracking Well For MeetMe

Courtesy of Benzinga.

In a report published Thursday, Wunderlich Securities analyst Blake T. Harper reiterated a Buy rating and $4.50 price target on MeetMe Inc (NASDAQ: MEET).

In the report, Wunderlich Securities noted, “MeetMe, Inc. (MEET) traffic data from Quantcast has been tracking well, with visitors up ~25% Y/Y for the months of October and November compared to our estimate for mobile daily active users (DAUs) to grow 23% Y/Y in Q4. Chinese social-mobile app Momo (MOMO-NR) is expected to begin trading today and the middle of its expected IPO pricing range represents a ~95x EV/S multiple on its expected 2014 sales compared 1.4x EV/S for MEET. While Momo is growing revenues and users substantially faster than MeetMe and is addressing a much larger mobile internet market in China, we believe the extreme disparity is unjustified for both. MeetMe also introduced a virtual currency product which should add an incremental revenue stream and the CFO bought 6k shares in the open market.”

MeetMe closed on Wednesday at $1.62.

Posted-In: Blake T. Harper Wunderlich SecuritiesAnalyst Color Reiteration Analyst Ratings