AOL Coverage Initiated by Analysts at Bank of America Corp. (AOL)
Research analysts at Bank of America Corp. assumed coverage on shares of AOL (NYSE:AOL) in a report released on Wednesday, American Banking and Market News reports. The firm set a “buy” rating and a $35.19 price target on the stock.
The analysts wrote, “We are initiating coverage on AOL with a Buy rating and $47 price objective based on 7x 2014 EV/EBITDA. Currently, the stock is trading at 5x EV/EBITDA with a 7% FCF yield. We view the valuation as attractive with 30%+ upside potential to our PO, which could be driven by a sentiment change on: 1) company repositioning as a video ad growth story versus a secular share loser; 2) visibility in real profit in the ad business with Patch restructuring; and 3) stability in the Subscription business.”
AOL (NYSE:AOL) traded up 4.26% during mid-day trading on Wednesday, hitting $36.69. 1,312,344 shares of the company’s stock traded hands. AOL has a 52 week low of $29.16 and a 52 week high of $43.93. The stock has a 50-day moving average of $35.01 and a 200-day moving average of $36.61. The company has a market cap of $2.817 billion and a P/E ratio of 27.54.
AOL (NYSE:AOL) last announced its earnings results on Wednesday, August 7th. The company reported $0.35 EPS for the quarter, beating the Thomson Reuters consensus estimate of $0.32 by $0.03. The company had revenue of $541.30 million for the quarter, compared to the consensus estimate of $539.66 million. During the same quarter in the prior year, the company posted $10.17 earnings per share. The company’s quarterly revenue was up 1.9% on a year-over-year basis. Analysts expect that AOL will post $1.52 EPS for the current fiscal year.
A number of other firms have also recently commented on AOL. Analysts at UBS AG initiated coverage on shares of AOL in a research note to investors on Thursday, September 19th. They set a “fair value” rating on the stock. They noted that the move was a valuation call. Separately, analysts at CRT Capital initiated coverage on shares of AOL in a research note to investors on Thursday, September 19th. They set a “fair value” rating on the stock. Finally, analysts at Topeka Capital Markets upgraded shares of AOL from a “hold” rating to a “buy” rating in a research note to investors on Thursday, September 19th. They now have a $43.00 price target on the stock, up previously from $41.00. One analyst has rated the stock with a sell rating, six have given a hold rating and ten have issued a buy rating to the company. The stock presently has an average rating of “Buy” and a consensus price target of $42.26.
In other AOL news, EVP Julie M. Jacobs sold 4,876 shares of the company’s stock on the open market in a transaction dated Friday, October 18th. The shares were sold at an average price of $33.52, for a total transaction of $163,443.52. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link.
AOL Inc (NYSE:AOL) is a global Web services company with a range of brands and offerings and a global audience.
Get Analysts' Upgrades and Downgrades via Email - Stay on top of analysts' coverage with Analyst Ratings Network's FREE daily email newsletter that provides a concise list of analysts' upgrades and downgrades. Click here to register now.