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What: Shares of Motley Fool Rule Breakers pick Ancestry.com
So what: The article was titled "Tech's Top 10" and highlighted Ancestry.com as one of the picks made by a handful of fund managers and a research analyst. It cites an 18-month price target of $44, which would represent an upside of 91% from Friday's close of $23.
Now what: Crosslink portfolio manager Mike Stark sees the recent weakness as a buying opportunity since the stock has pulled back substantially from its all-time high of $45.79 set earlier this year, according to Yahoo! Finance. Stark describes Ancestry.com as the dominant online company for family-tree research, and he sees revenue increasing annually by 30%, as a new user interface makes the site easier to use. His earning-per-share estimate for 2012 sits at $2, higher than the consensus of $1.50, and emphasizes that the company's revenue per subscriber is greater than four times the cost of retaining them.
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Fool contributor Evan Niu holds no position in any company mentioned. Click here to see his holdings and a short bio. Motley Fool newsletter services have recommended buying shares of Ancestry.com. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.