How much is Rambler?
“We believe that the published market data exceeds the assumptions underlying our assessment of the value of Rambler Media, as we expected the size of the online advertising market in 2006 to be $ 140 million, including $ 80 million in the banner advertising segment and $ 60 million in the contextual advertising segment. Thus, we may have underestimated the revenue of Rambler Media from contextual advertising (in 2005, this segment accounted for 33% of revenue). The acquisition of Begun seems to be an even more significant factor for the value of Rambler Media, as Begun is, first and foremost, a contextual advertising agent. Over the past 10 days, Rambler Media stock quotes have shown strong momentum, up 10%. Current quotes at $ 44.53 per share exceed our forecasted end-2007 price of $ 43.2 per share.
Our preliminary calculations imply that the acquisition of Begun should increase the value of Rambler by at least 30% (see our October Rambler report). Thus, we still consider Rambler an attractive investment target and reiterate our Buy recommendation on the stock. We believe that the published ones will support the shares of all the media companies we analyze. Rambler and CTC Media remain our favorites in the sector, ”says Aton Broker.
Our preliminary calculations imply that the acquisition of Begun should increase the value of Rambler by at least 30% (see our October Rambler report). Thus, we still consider Rambler an attractive investment target and reiterate our Buy recommendation on the stock. We believe that the published ones will support the shares of all the media companies we analyze. Rambler and CTC Media remain our favorites in the sector, ”says Aton Broker.