RBC Capital’s Earnings Preview: TUBE, P, YELP, GRPN

RBC Capital Markets analyst Mark Mahaney and his team weighed in on a variety of small-mid cap stocks on July 19 in light of each company's upcoming earnings results. Find out what the analysts advise investors to look for in TubeMogul Inc. (TUBE), Pandora Inc. (P), Yelp Inc. (YELP), and Groupon Inc. (GRPN):

TubeMogul Inc

TubeMogul is a company that offers an enterprise software platform for digital video advertising. The company will post second quarter 2015 earnings results in August and is estimated to post a loss of ($0.18) per share and $39.16 million in revenue, down from a loss of ($0.09) per share but up from $28.72 million from the same quarter last year.

RBC Capital expects TubeMogul to post a loss of ($0.18) per share but forecast slightly higher revenue of $39.7 million. The analysts also believes the Street's Q3 and 2015 estimates for TubeMogul “are reasonable” but have a “greater likelihood of… nudging higher post-Q2 earnings.”

RBC reiterates an Outperform rating on TubeMogul ahead of the company's earnings for the following reasons: “1) TUBE operates at the intersection of Online Video & Programmatic Advertising (fastest growing Online Advertising segments); 2) TUBE has access to more inventory and its ad spend is larger and faster growing than traditional video ad networks; 3) TUBE's focus on transparency, self-service, and analytics has led to a differentiated and sticky technology solution; & 4) TUBE is well-positioned to benefit from the shift of TV ad dollars to online channels and the programmatic purchasing of TV ads.”

Out of 5 analysts polled by TipRanks, all 5 are bullish on TubeMogul. The average 12-month price target for TubeMogul is $21.60, marking a potential upside of 42.11% from where the stock is currently trading. On average, the all-analyst consensus for TubeMogul is Strong Buy.

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