Adams Harkness Upgrades Bankrate

Analyst Colin Gillis says the banking and credit product website's new initiatives are on track to produce positive results in 2005

Adams Harkness upgrades Bankrate Inc. (RATE ) to buy from market perform.

Analyst Colin Gillis tells MarketScope he believes new initiatives spurred on by new CEO Tom Evans are on track to produce positive results in 2005.

These initiatives include optimizing ad inventory sales to drive rates higher, site redesign, optimization to maximize user experience and pages viewed, are an attempt to drive interest in Bankrate's other main channels, including deposits and auto loans.

Gillis says Bankrate users are a highly targeted audience that advertisers pay premium rates to reach. He sees 66 cents 2005 earnings per share and sets a $16 target.

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