Wunderlich Says It's Time To Buy RetailMeNot

In a report published Wednesday, Wunderlich Securities analyst Blake Harper suggested that RetailMeNot Inc (NASDAQ: SALE) is poised to benefit from stronger consumer adoption of mobile commerce.

"Mobile commerce is accelerating in the U.S. according to multiple industry reports and we believe this should help improve RetailMeNot's mobile monetization and overall mobile revenues," Harper wrote. "RetailMeNot should have some upcoming catalysts from stronger mobile commerce, which could help improve its monetization rate, which we view as the single most critical factor for the stock."

According to Harper, RetailMeNot's mobile monetization could improve as mobile commerce and conversion levels increase by reducing the number of cross-device transactions (i.e., a consumer browses on a smartphone but finalizes the transaction on a desktop). The analyst added that the largest catalyst to move shares higher is the company improving its mobile monetization rate from just over 20 percent in 2014 to 25 to 30 percent in 2015.

Harper also noted that the retail industry continues to adapt towards deploying mobile in-store promotions but is still in the early stages. The analyst added that it is merely a matter of time before mobile in store transactions accelerate, marking a key catalyst to support RetailMeNot's operation.

Finally, Harper stated that past Search Engine Optimization (SEO) issues that stemmed from Google Inc changing its search algorithm is now "behind the company" and the company is now poised to maintain its "strong" SEO position.

Shares remain Buy rated with a $28 price target.