Feb. 13 (Bloomberg) -- Millennial Media Inc. rose the most in eight weeks as the seller of advertising space on mobile devices prepares to report earnings for a quarter that a Janney Montgomery Scott LLC analyst said was “extremely robust.”
The shares climbed 6.3 percent to $12.52 at the close in New York for their biggest daily gain since Dec. 18. They are little changed this year, as the Russell 2000 Technology Index has increased 8.4 percent.
Millennial plans to release fourth-quarter results Feb. 19. Richard Fetyko, an analyst with Janney Montgomery Scott in New York, said in an interview today that mobile-ad prices grew by “double-digit” percentages in the fourth quarter and that demand hasn’t slackened this quarter, as it usually does.
“The feedback in terms of mobile ad budgets and spend trends in the fourth quarter was that it was extremely robust,” according to his discussions with mobile-ad exchanges and Millennial’s competitors, Fetyko said. He recommends buying the Baltimore-based company’s shares.
“It just sort of fits our thesis that 2013 is really shaping up to be the inflection point in the mobile advertising industry,” he said.
Fetyko said Millennial shares also may be reacting to an AdAge Digital report on Feb. 11 that the company was in talks to acquire Metaresolver, a closely held startup media buyer based in San Francisco that targets mobile advertising. AdAge cited unidentified executives close to the company.
Fetyko said he doesn’t know if the report is true. The acquisition would make strategic sense, he said.
Max Nelson, a spokesman for Millennial, declined to comment on the acquisition report.
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