Brightcove Shares Upgraded To Buy Amid 'Strong Q, Momentum'

In a report published Wednesday, B. Riley analysts upgraded the rating on Brightcove Inc (NASDAQ: BCOV) from Neutral to Buy, while raising the price target from $7.50 to $9.40.

Heightened activity in the online video ecosystem over the past couple of quarters is benefiting Brightcove. The company's improved product line-up and the "increased modularity of its products makes it available to many and expanded integration with marketing automation tech stack increases visibility," the analysts mentioned.

Newer account wins and sustainability in industry momentum are expected to drive the company's performance in the near future. The analysts expect the company to "report/guide ahead of consensus for 1Q15/2Q15 on April 30 and to raise its full year guidance, primarily due to increasing ARPU."

Recent partnerships with Marketo Inc (NASDAQ: MKTO) and Oracle Eloqa will help Brightcove expand into the marketing tech ecosystem.

Improved revenue growth and some gross margin leverage are expected to drive Brightcove's future performance. "As a result, we expect BCOV to generate positive PF EPS in 4Q15 and for the full year in 2016," the analysts added.

The EPS estimates for F2015 and F2016 have been raised from -$0.11 to -$0.10 and from -0.07 to $0.01, respectively.