Does Move Have Room to Move Higher?

While Fools should generally take the opinion of Wall Street with a grain of salt, it's not a bad idea to take a look at particularly stock-shaking analyst upgrades and downgrades -- just in case their reasoning behind the call makes sense.

What: Shares of Move (NASDAQ: MOVE  ) climbed 2% today after Benchmark Company raised its price target on the online real estate site operator.

So what: Benchmark simply reiterated its buy rating on Move, but moved the price target all the way from $17 to $23 per share -- representing about 39% worth of upside to its closing price on Friday. Value investors might find the stock's red-hot price action in 2013 a little disconcerting, but analyst Daniel Kurnos believes that Move's still-juicy growth prospects and cheap valuation relative to peers like Zillow and Trulia give it plenty of room to run.

Now what: Benchmark doesn't expect Move's operating momentum to slow anytime soon. "We believe Move continues to gain traction across its entire product suite, with a turnaround in the core Showcase platform leading to stronger optics and improved cash flow growth over the medium- to long-term," said Kurnos. "[W]e view Move as the preferred long-term way to play the online housing market." Of course, when you consider just how expensive the stock seems on an absolute basis -- price-to-sales of 3 and an EV/EBITDA of 40 -- I'd wait for a much wider margin of safety before moving in. 

More compelling tech picks
The tech world has been thrown into chaos as the biggest titans invade one another's turf. At stake is the future of a trillion-dollar revolution: mobile. To find out which of these giants is set to rule the next decade, we've created a free report called "Who Will Win the War Between the 5 Biggest Tech Stocks?" Inside, you'll find out which companies are set to dominate, and we'll give in-the-know investors an edge. To grab a copy of this report, simply click here -- it's free!

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2661592, ~/Articles/ArticleHandler.aspx, 12/25/2014 2:56:14 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...