IronSource rises as Wedbush adds to Best Ideas List
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IronSource (NYSE:IS) shares rose early Thursday after investment firm Wedbush Securities added the software company to its Best Ideas List, noting the recent decline in the stock is overdone.
Analyst Michael Pachter, who maintained the firm's outperform rating and $13 price target on IronSource (IS), implying more than 100% upside, noted that the company has "several long-term tailwinds" ahead of it that should benefit shareholders.
"Business fundamentals for the company remain strong, driven by its unique ability to analyze first-party, third-party, and device-level data in order to develop user acquisition and monetization solutions that resonate with app developers and telecom operators," Pachter wrote in a note to clients.
IronSource (IS) shares rose more than 2% to $5.26 in premarket trading on Thursday.
In addition, the analyst noted IronSource (IS) has consistently been able to deliver "robust top-line growth and profitability" because of its presence in mobile gaming and could expand to other non-gaming markets in the future. 
IronSource (IS) is also likely to benefit from increased privacy on mobile devices, specifically from the implementation of Apple's (AAPL) Identifier for Advertisers and Google's (GOOG) new privacy restrictions. 
Other growth opportunities for the Tomer Bar-Zeev-led company include more in-game advertising and potentially accretive acquisitions. 
Last month, IronSource (IS) reported fourth-quarter results that were largely in-line, as earnings came in as expected and revenue slightly topped estimates.