Barrington Initiates IDI Inc. With An Outperform Rating

While risk management is the current priority for IDI, Inc. (NYSE: IDI), the company ultimately targets custom big data and analytics, Barrington Research’s James C. Goss said in a report. He initiated coverage of the company with an Outperform rating and a price target of $7.

While the IDI leadership team has spent more than a decade in the pioneering use of data analytics, ultimately the target is customized Big Data and Analytics solutions “that move beyond the scope of competitive applications to high ticket, very profitable jobs,” analyst James Goss mentioned.

Opportunities Ahead

Although traditional applications at the company are currently small, they offer a “potentially fast growing and high margined business opportunity,” Goss commented.

The acquisition of Fluent provided the opportunity to apply data fusion capabilities to a new application in consumer products advertising. Although current revenues are significant, the potential for margin expansion is more modest, the analyst noted. He added, “Fluent provides the company [IDI] with substance as management executes on its mission to create a new data analytics operation.”

Goss expects IDI to come into the black, in terms of EPS, EBITDA and FCF, in 2018.

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