Strong 4th Quarter Boosts Rentrak

6/15/2007 8:00 PM Eastern

Oppenheimer & Co. cable and satellite analyst Thomas Eagan maintained is “buy” rating and $18 price target on Rentrak last week after the company reported strong fourth-quarter results, adding that the provider of digital video measurement information is poised to capture additional market share from traditional ratings companies like TNS Media Intelligence and Nielsen Media Research.

Rentrak, which has access to about 42 million set-top boxes across the country, reported fourth-quarter revenue of $28.2 million in the quarter, down slightly from the same period in the prior year but in line with Eagan’s estimates. Operating cash flow, at $3 million in the quarter was ahead of Eagan’s $2.1 million estimate.

Furthering Eagan’s optimism is the progress in developing its Linear TV Essentials product — the company said that it has completed the first version of the product, which processes second-by-second U.S. Census-level data across hundreds of channels.

“We see this as an invasion of what TNS and Nielsen consider to be their turf,” Eagan wrote.

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