Mood Media is undervalued, says Euro Pacific’s Goff

Mood Media’s (Mood Media Stock Quote, Chart, News: TSX:MM) evolving turnaround will become more evident with the release of its fourth quarter numbers, say Euro Pacific analyst Rob Goff.

On March 13th, Mood Media will report its fourth quarter and fiscal 2014 results. Goff expects the company will generate EBITDA of $28.4-million on revenue of $127.9-million.

While shares of the company have fallen from a 2012 high of more than four dollars to a recent low of just forty cents, the analyst thinks the company is making its way through its restructuring.

“We see aggressive returns, well compensating investors for Mood’s risk profile. We believe Mood will emerge as an efficient, FCF platform recognized for its attack on the much larger, higher growth, visual and mobile advertising market. Delivery to plan should merit positive revaluation considerations,” said Goff.

Mood Media grabbed headlines in 2011 when it completed the $345 million acquisition of Muzak. The company operates in a a space that is referred to as sensory branding, a term for multi-sensory marketing tactics now being used by giants such as Nissan, Pizza Hut and Starbucks.

In a research update to clients this morning, Goff reiterated his “Speculative Buy” rating and $0.75 one-year target on Mood Media, implying a return of 38.9% at the time of publication.

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