NeuLion is undervalued, says Cantor Fitzgerald Canada

A deal with a worldwide leader in its space is more evidence that NeuLion (NeuLion Stock Quote, Chart, News: TSX:NLN) is a compelling investment, says Cantor Fitzgerald Canada analyst Ralph Garcea.

Last Thursday, NeuLion announced that its Digital Platform and Encoder had been certified to enable Nielsen measurement on Nielsen’s Digital in TV Ratings product, a move that will allow for NeuLion content partners to add digital audiences to their national and local TV ratings.

“Audiences in today’s always-on, multidevice, on-demand world consume content very differently than they ever have before, and it is critical that our partners are able to effectively measure and track viewership and consumption on new platforms,” said CEO Dr. Kanaan Jemili. “By working with Nielsen we are able to bring industry-best measurement tools to our partners, helping them understand viewer engagement and better monetize their offerings.”

Garcea says this move will enable NeuLion to attract more customers and retain existing customers who will benefit from real-time critical data analytics.

“NLN’s digital platform being certified by Nielsen allows content partners to add digital audiences to their national and local TV ratings – Nielsen is the recognized leader in audience measurement, covering 90%+ of the world’s population,” he said. “NLN also announced a new real time OTT dashboard which facilitates marketing analytics. The dashboard will monitor quality of experience and metrics surrounding the health and growth of OTT and TV everywhere services.

In a research update to clients today, Garcea maintained his “Buy” rating and one-year price target of $2.00 on NeuLion, implying a return of 52 per cent at the time of publication.

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