Needham & Company Reinstates Bankrate (RATE) at Buy

Needham & Company reinstates coverage on Bankrate (NYSE: RATE) with a Buy rating and a price target of $14.00.

Analyst Laura Martin commented, "We reinstate our rating with a BUY and a $14 target price. Shares of RATE were down sharply last week after it issued guidance that was well below consensus estimates for FY15 and, on the conference call, discussed competitive price pressures in RATE’s Banking segment, loss of affiliates in its Credit Card segment, and lower marketing budgets from autos in its Insurance segment. We believe valuation is now compelling because investors in RATE have several safety nets, including: 1) FCF momentum; 2) Inexpensive Valuation; 3) Underowned; and 4) Apax ownership. We lower our estimates, based on guidance.

The analyst cited the following 'safety nets':

• Safety Net #1: FCF
• Safety Net #2: Valuation
• Safety Net #3: Underowned
• Safety Net #4: Apax

For an analyst ratings summary and ratings history on Bankrate click here. For more ratings news on Bankrate click here.

Shares of Bankrate closed at $11.19 yesterday.

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