ValueClick (NASDAQ: VCLK) is one of the world's largest and most diversified online marketing services companies.
Analysts see 2008 revenue increasing 15-20% following a likely 15-17% rise in 2007, as the internet continues to grab an increasing share of marketing budgets. Analysts also expect VCLK to add to its corporate customer base.
Meanwhile, the company's revenue mix remains favorable, and operating margins appear to have bottomed in 2007. Further, there's ample room for VCLK to broaden its international footprint. The Reuters F2007/F2008 EPS consensus estimates for VCLK are $0.71/$0.83.
The risks? Analysts are keeping an eye on increasing competition in the sector, particularly from deep-pocketed competitors. Further, a Federal Trade Commission investigation into VCLK's promotional-based offerings is expected to be resolved relatively quickly: stay tuned.
The First Call mean rating for VCLK is: Buy [21 firms]. Mean 2008 target: $27 [high: $30, low: $22].
Stock Analysis: ValueClick is a moderate-risk stock not suitable for low-risk investors. Investors with an investment horizon longer than two years should be rewarded from VCLK's shares. Sell/Stop Loss if you were to purchase shares in this company: $13.
Disclosure: Lazzaro has no positions in stocks. In addition to private real estate holdings, he owns corporate and municipal bonds, and cash certificates of deposit.
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