Aol (AOL) Lifts on Big Ad Plans, Positive Analyst Commentary
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Price: $49.99 --0%
Rating Summary:
1 Buy, 18 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 0 | Down: 0 | New: 2
Rating Summary:
1 Buy, 18 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 0 | Down: 0 | New: 2
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Shares of Aol, Inc. (NYSE: AOL) are sharply higher Wednesday (+5%) as investors react positively to the release of plans for a new global programmatic advertising platform for brands, agencies and publishers - ONE by Aol. In addition, Jefferies US Internet Team was out pounding the table on the stock earlier.
Describing the feature, Aol said: "ONE will be the first platform that empowers brands with a holistic view of the consumer’s journey through the marketing funnel, and makes that insight actionable, in real-time on the platform. Development on ONE is underway and customers will be able to start using portions of the platform later this year. The single, unified platform takes media planning and management to a new level, with predictive analytics that provide immediate insights on metrics like reach, frequency, and performance, and post-campaign insights that look across all screens and formats to deliver immediate impact on brand metrics. It is completely format, screen and inventory agnostic – from video, display and TV, to tablet, desktop and mobile devices, to reserved and non-reserved inventory across AOL or any other publisher or media source."
In its note this morning on the stock, Jefferies US Internet Team reiterated a Buy rating and $66 price target, saying recent weakness is a buying opportunity. In particular, the firm said to focus on the Network segment, which they believe is an underappreciated longer term opportunity by investors. "Since 2009, through a combination of smart building and buying, Aol has stitched together a powerful set of assets to build out "the pipes" for high quality content and ad distribution. In aggregate Aol Networks reaches ~2.5k brands and ~40k publishers globally (Aol internal data), and had ~200M unique visitors globally in December (comScore).
The firm adds that AOL was an early mover in video. "Aol was an early investor in online video and, we believe, has some of the strongest video assets in the fastest growing ad format category. In addition to the Aol On Video Network, the company's recent Adap.TV acquisition allows advertisers to buy video programmatically outside of the Aol network. We believe Adap.tv had $170M in revenue in FY13, and grew ~100%."
The firm also notes the Aol Networks also has a complementary suite of Programmatic Asset.
On the valuation, the firm notes the stock traded down since 4Q13 earnings, on conservative guidance. Based on their conservative DCF analysis their price target is $66. However, in an updated sum of the parts they see unrecognized value in high growth programmatic assets within the AOL Network business in the range of $80+ per share.
For an analyst ratings summary and ratings history on AOL, Inc. click here. For more ratings news on AOL, Inc. click here.
Shares of AOL, Inc. closed at $42.25 yesterday.
Describing the feature, Aol said: "ONE will be the first platform that empowers brands with a holistic view of the consumer’s journey through the marketing funnel, and makes that insight actionable, in real-time on the platform. Development on ONE is underway and customers will be able to start using portions of the platform later this year. The single, unified platform takes media planning and management to a new level, with predictive analytics that provide immediate insights on metrics like reach, frequency, and performance, and post-campaign insights that look across all screens and formats to deliver immediate impact on brand metrics. It is completely format, screen and inventory agnostic – from video, display and TV, to tablet, desktop and mobile devices, to reserved and non-reserved inventory across AOL or any other publisher or media source."
In its note this morning on the stock, Jefferies US Internet Team reiterated a Buy rating and $66 price target, saying recent weakness is a buying opportunity. In particular, the firm said to focus on the Network segment, which they believe is an underappreciated longer term opportunity by investors. "Since 2009, through a combination of smart building and buying, Aol has stitched together a powerful set of assets to build out "the pipes" for high quality content and ad distribution. In aggregate Aol Networks reaches ~2.5k brands and ~40k publishers globally (Aol internal data), and had ~200M unique visitors globally in December (comScore).
The firm adds that AOL was an early mover in video. "Aol was an early investor in online video and, we believe, has some of the strongest video assets in the fastest growing ad format category. In addition to the Aol On Video Network, the company's recent Adap.TV acquisition allows advertisers to buy video programmatically outside of the Aol network. We believe Adap.tv had $170M in revenue in FY13, and grew ~100%."
The firm also notes the Aol Networks also has a complementary suite of Programmatic Asset.
On the valuation, the firm notes the stock traded down since 4Q13 earnings, on conservative guidance. Based on their conservative DCF analysis their price target is $66. However, in an updated sum of the parts they see unrecognized value in high growth programmatic assets within the AOL Network business in the range of $80+ per share.
For an analyst ratings summary and ratings history on AOL, Inc. click here. For more ratings news on AOL, Inc. click here.
Shares of AOL, Inc. closed at $42.25 yesterday.
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