- ThinkEquity is reiterating Buy rating and $36 12-month price target on aQuantive (NASDAQ:AQNT). Based on recent meetings with management and industry checks, they believe AQNT's 4Q06 is tracking well and that the company should outperform the industry in FY07. Key drivers include international expansion, a rapidly scaling Drive PM, and share gains in technology (Atlas) and the agency business as marketers gravitate toward best-of-breed digital approaches vs. the integrated offerings of the large marketing services holding companies. Firm believes the pullback in AQNT's shares due to the marginal 3Q06 creates an excellent buying opportunity for a core sector holding.
They believe that increased sales collaboration between Atlas and DrivePM under Kirk McDonald is in the early stages of driving deeper penetration of marketer budgets for both products. Furthermore, the firm believes Atlas should make outsized share gains in Europe under the leadership of Scott Howe, who has demonstrated a strong track record of growing businesses at Avenue A and DrivePM and now heads both DrivePM and Atlas International. Believes that competitor DoubleClick has under-invested in the European market and is currently facing challenges in moving Falk eSolutions customers onto the DoubleClick platform (DoubleClick acquired Falk in March 2006).
Firm believes that AQNT's Digital Marketing Services (DMS) agencies face a strong pipeline of demand (perhaps best indicated by a 38% Y/Y DMS headcount increase in 3Q06), as projects delayed during Q3 are coming through in the fourth quarter.
Notablecalls: Anything new in this note? Nope! So it goes to the not actionable but good to know category.
They believe that increased sales collaboration between Atlas and DrivePM under Kirk McDonald is in the early stages of driving deeper penetration of marketer budgets for both products. Furthermore, the firm believes Atlas should make outsized share gains in Europe under the leadership of Scott Howe, who has demonstrated a strong track record of growing businesses at Avenue A and DrivePM and now heads both DrivePM and Atlas International. Believes that competitor DoubleClick has under-invested in the European market and is currently facing challenges in moving Falk eSolutions customers onto the DoubleClick platform (DoubleClick acquired Falk in March 2006).
Firm believes that AQNT's Digital Marketing Services (DMS) agencies face a strong pipeline of demand (perhaps best indicated by a 38% Y/Y DMS headcount increase in 3Q06), as projects delayed during Q3 are coming through in the fourth quarter.
Notablecalls: Anything new in this note? Nope! So it goes to the not actionable but good to know category.
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