Wunderlich Securities Sees Mobile DAUs Tracking Ahead Of Estimates For MeetMe

In a report published Friday, 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, "MeetMe, Inc. (MEET) should be able to grow its 1Q15 mobile DAUs (daily active users) by over 35% Y/Y based on tracking data from Quantcast, which compares to our estimate for 29% Y/Y growth. As a result, we would expect upside to our Q1 mobile revenues estimate of $7.6 million, which is up 62% Y/ Y and mobile DAUs of just over one million.

"We estimate desktop revenues to decline to 10%-15% of total revenues in 2015, which appears in line with Q1 Quantcast data. With potential upside to our mobile revenue forecast of 50%, it should enable overall revenue growth to accelerate to at least the upper teens in 2016. With the stock trading at 1.6x EV/S, 9x EV/EBITDA, and 11x P/E on our 2015 estimates, it appears undervalued given the potential to grow mobile revenues."

MeetM closed on Thursday at $1.89.