Needham & Company Reiterates Buy Rating and $10 PT on TechTarget (TTGT) Following 4Q16 Results

Needham & Company analyst Kerry Rice reiterates Buy rating and $10 PT on TechTarget Inc. (NASDAQ: TTGT), noting the company delivered 2016 fourth quarter results above expectations, also improving margins for fiscal year 2017.

Rice comments, "For 4Q16, results were slightly better than expectations. IT Deal Alert outperformed expectations as Priority Engine (PE) continued to gain traction and was launched in APAC in Q4. Long-term contracts now represent 15% of online revenue, which is expected to increase to 20% in 2017. We are also encouraged by the integration of PE with Marketo and expect additional integration partners to serve as a growth catalyst in 2H17. With an increased focus on data products, management decided to phase out its low-margin Events business, which should improve operating leverage and contribute to higher overall EBITDA margin in 2017. FY17 guidance was effectively in-line with expectations, excluding Events revenue, with seasonal Q1 weakness giving way to a stronger 2H17."

For an analyst ratings summary and ratings history on TechTarget, Inc. click here. For more ratings news on TechTarget, Inc. click here.

Shares of TechTarget, Inc. closed at $8.84 yesterday.

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