JMP Securities upgraded iVillage (IVIL
) to strong buy, explaining that the women's news website is likely to have stronger earnings in the coming years.
Analyst Richard Fetyko cited confidence from factors such as iVillage's launching several new services that should monetize its brand and content assets, as well as create new, high-margin revenue streams. Fetyko is considering projected earnings before interest taxes depreciation and amortization, or EBITDA growth rates of 60% and 30% in 2006 and 2007, respectively. He believes share prices could move closer to between $9 and $10 per share.