Roth Capital Remains a Buy on The Meet Group Inc

By Carrie Williams

In a report released yesterday, Darren Aftahi from Roth Capital reiterated a Buy rating on The Meet Group Inc (NASDAQ: MEET), with a price target of $9.25. The company’s shares opened today at $4.76.

Aftahi said:

“We are encouraged by this early data, and continue to believe there could be monetization opportunities for its service, in particular advertising, going forward. Moreover, live video is a feature that we believe encourages engagement on the app, which should have a positive LT impact. Quick take: We surveyed usage of MEET’s MeetMe app for a period of two weeks. On average, we observed ~60-70k viewers on its app across its “trending” feature, which does not include all viewers and broadcasters on its app. On its last call, management suggested that ~13-15% of users are using the feature each day . While we cannot measure all users, our survey work implies ~5-6% of MeetMe DAU app users are using the service at any given time. This is encouraging as it clearly adds another level of engagement to the application, which could turn into monetization opportunities longer- term. We currently don’t model for any video monetization in our P&L, but believe an opportunity exists, in particular around advertising (and perhaps in-app purchase).”

According to TipRanks.com, Aftahi is a 1-star analyst with an average return of -1.5% and a 45.2% success rate. Aftahi covers the Technology sector, focusing on stocks such as Mitek Systems Inc, Angie’s List Inc, and Remark Media Inc.

The Meet Group Inc has an analyst consensus of Strong Buy, with a price target consensus of $9.31.

Based on The Meet Group Inc’s latest earnings report for the quarter ending March 31, the company posted quarterly revenue of $20.06 million and quarterly net profit of $445.8K. In comparison, last year the company earned revenue of $13.32 million and had a net profit of $2.35 million.

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The Meet Group, Inc. provides on-line social networking services. The company offers online marketing capabilities, which enable marketers to display their advertisements in different formats and in different locations. The company was founded by Jeffrey Scott Peterson in June 1997 and is headquartered in New Hope, PA.