Jeremy eyes up blinkx
Stock: blinkx (BLNX:AIM)
Broker Call: Daniel Stewart initiates with ‘buy’
Price Target: 61p (67.1% upside)
Rapid growth and broad potential applications underpin Mike Jeremy’s call on blinkx (BLNX:AIM). The Daniel Stewart analyst initiated ‘buy’ coverage on the online video search group last week (3 Jun), as the growing tiddler reported its maiden profits at the EBITDA (earnings before interest, tax, depreciation and amortisation)level for the second half.
In the near term blinkx should benefit from the ongoing shift in advertising away from newspapers to the internet. But Jeremy also emphasises long-term growth potential in the accelerating trend towards on-web television viewing, via both television sets and mobile devices, an area into which the £ is now moving.
blinkx, whose search software ties videos with relevant advertising, saw 22.6 million video searches every day by March this year, compared to 8.4 million the year before, noted Jeremy. According to research from comScore, the Cambridge firm is now the UK’s fastest-growing video site after social networking platform Facebook.
Shares says: Agree. Strong growth and exciting potential. Buy at 36.5p.