Merriman Curhan Ford reiterates a 'Buy' rating on DG FastChannel, Inc., raises valuation range from $30-35 to $35-40.
Merriman analyst says, "The core of our investment thesis rests with increasing HD adoption and 4Q09 results strengthened our conviction. HD revenue accelerated (up 37% Q/Q) and HD adoption should continue to fuel revenue growth for DG in the foreseeable future. During 2010, the Y/Y comps should get easier as we lap the elections related revenue spike in 2008, HD adoption ramps and the macro environment improves... We project EBITDA to grow 15% to $89.4 million and FCF to grow 29% to $63.8 million in FY10, which implies EV/EBITDA and EV/FCF multiples of 10x and 14x (FY10)."
|
