Meet Group Inc (MEET)

[CharlesNet]

MeetMe +8.8% on Wunderlich coverage launch • 9:36 AM

Wunderlich's Blake Harper has launched coverage of MeetMe (MEET) with a Buy and $4.50 PT.
Harper: "We expect the company to increase the number of mobile active users, their monetization levels, and its FY15 revenues above the consensus through enhancements to its core app, its mobile advertising deals, and broader trends with younger people sharing content via mobile apps."
He admits MeetMe's high churn rates yield an "elevated risk profile," but thinks that's baked into the valuation. His PT is equal to 3x EV/2015E sales, assuming 20% 2015 revenue growth.
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