After Rightside investor day, analyst says forecast is on target.
B. Riley & Co analyst Sameet Sinha has reiterated his forecast for new top level domain names and his $15 price target for Rightside. Rightside (NASDAQ: NAME) is currently trading for $8.29.
Sinha forecasts that 29.1 million registrations will be made under new to level domain names by the end of 2016. Based on 3.4 million domains registered to date, he believes his forecast of 3.6 million by the end of this year is on target.
As for Rightside, Sinha set the price target by applying a 1.25x multiple on his 2015 revenue forecast. He believes Rightside is well positioned thanks to its vertically-integrated business. Name.com, Rightside’s retail operations, has averaged about 10% of sales so far, he noted.
Sinha is the only analyst I’m aware of covering new TLDs and Rightside.