After Rightside investor day, analyst says forecast is on target.
B. Riley & Co analyst Sameet Sinha has reiterated his forecast for new top level domain names and his $15 price target for Rightside. Rightside (NASDAQ: NAME) is currently trading for $8.29.
Sinha forecasts that 29.1 million registrations will be made under new to level domain names by the end of 2016. Based on 3.4 million domains registered to date, he believes his forecast of 3.6 million by the end of this year is on target.
As for Rightside, Sinha set the price target by applying a 1.25x multiple on his 2015 revenue forecast. He believes Rightside is well positioned thanks to its vertically-integrated business. Name.com, Rightside’s retail operations, has averaged about 10% of sales so far, he noted.
Sinha is the only analyst I’m aware of covering new TLDs and Rightside.
George Kirikos says
Except for 1 director buying 12,000 shares on December 2, 2014, the insider transactions have been “sells”:
https://finance.yahoo.com/q/it?s=NAME+Insider+Transactions
The acquisitions at $0 per share are grants of free stock (i.e. stock-based compensation).
Andrew Allemann says
I’ve been looking over the director trades, but they seem to be planned sales of some sort.
PageHowe.com says
This stock is a buy IMHO. You have year end tax selling from Demand Holder who all of a sudden saw a little stub of shares in their accounts and its such a small piece of their portfolio, i think they sell. I was pleasantly surprised that no debt went over to rightside on the split. Only confusing thing for me is the account for prepaid registrations, they dont book the revenue, or the cost, but the spread is on the balance sheet somewhere.
i hate that this quarterly earning push will reduce investment in new tlds because they have to pull profit form them now, and any marketing hits the bottom line. I cant beleive they dont do more investment off balance sheeet investment for the tlds.
ill say buy up to $9, 13 by the Super Bowl and higher in 2015.
but thats just my opinion.
Page Howe
Philip says
The really big money will come consolidation / takeover action in the new gTLD space. There’ll be limited choice for potential suitors and high premiums paid for the right companies.