Wunderlich Securities Updates Estimates To Reflect 2015 Guidance For MeetMe

In a report published Thursday, Wunderlich Securities analyst Blake T. Harper reiterated a Buy rating and $4.50 price target on MeetMe Inc. (NASDAQ: MEET).

In the report, Wunderlich Securities noted, "We are trimming our 2015 and 2016 MeetMe, Inc. (MEET) estimates slightly given the company's updated 2015 guidance. Our 4Q14 estimates are unchanged and we expect the company's results to be in line with our estimates for $12.9 million in revenues, including ~$8 million in mobile revenues, up 60% y/y given the preannouncement of 920k mobile daily active users (DAUs). Quantcast metrics also support the higher user growth, and given the company's increasing engagement, and new ad deal to take effect on 3/1/15, monetization should increase as well. With the stock trading at 1.2x EV/S, 6x EV/EBITDA, and 8x P/E on our 2015 estimates, it appears undervalued given the potential to grow mobile revenues. Our rating on MEET shares remains Buy with a price target of $4.50."

MeetMe closed on Wednesday at $1.70.