Wunderlich Securities Believes Promising Start To Holiday Shopping Season Bodes Well For RetailMeNot

In a report published Tuesday, Wunderlich Securities analyst Blake T. Harper reiterated a Buy rating and $32.00 price target on RetailMeNot Inc (NASDAQ: SALE).

In the report, Wunderlich Securities noted, “Multiple industry reports have indicated that online sales grew 20-30% Y/Y for the Thanksgiving and Black Friday weekend, with mobile devices accounting for around one-fourth of total transactions, which should translate to a strong start to RetailMeNot, Inc.'s (SALE) strongest four week period of the year. The growth in online and mobile sales is contrasted by a slight decline in in-store retail sales, which is still a small portion of revenues. While we don't expect mobile monetization to improve dramatically above 20% of the desktop monetization in Q4, we believe early industry data has increased confidence for RetailMeNot to report mobile traffic and revenues in-line with our estimate, up 118% and 134% Y/Y, and possibly even better desktop traffic than our estimate of flat Y/Y.”

RetailMeNot closed on Monday at $14.34.