Friday, January 28, 2011

Ancestry.com (NASDAQ:ACOM) Subscriber Growth Expected to Surge

Ancestry.com (NASDAQ:ACOM) is expected to extend its brand to a larger market, noted Canaccord, who sees their subscriber growth soaring, with the catalyst being the second season of Who Do You Think You Are? on NBC.

Canaccord says, "As Ancestry’s brand reaches a more mass-market audience, we expect to see strong subscriber growth and believe the second season of NBC’s reality show Who Do You Think You Are? will serve as a catalyst for that growth. With the stock trading at 32x PF earnings vs. the e-commerce group at 34x, and substantial growth opportunities from broader brand awareness, greater ease of use, and international expansion, we believe ACOM is likely to continue to outperform the broader Internet sector at 26x."

Canaccord Genuity reiterates a 'Buy' rating on Ancestry.com (ACOM), which closed Thursday at $35.98, gaining $0.61, or 1.72 percent. Canaccord has a price target on Ancestry.com of $40.

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