HC Wainwright: Inuvo 'Hitting Its Stride,' Initiating With Buy

In a report published Tuesday, analysts at HC Wainwright & Co initiated coverage of Inuvo Inc (NYSE: INUV) with a Buy rating and price target of $4. The company offers a robust combination of content, technology and marketing.

Inuvo is an online advertising and publishing company that "generates revenues by serving both content and ads across a network of websites and applications on mobile and desktop," the analysts said.

"We believe INUV is partly differentiated because it has leveraged its core technology to create its own systems for analytics, advertising, and content management. This helps the company to reduce reliance on external partners and maintain better control of operational strategy," the HC Wainwright report stated.

Inuvo announced the beta launch of SearchLinks in March. This is a suite of advertising products for desktop and mobile publishers. The analysts believe SearchLinks is already generating revenues of $1 million per quarter, despite its "expanded beta" positioning.

In addition, the mobile channel is also contributing significantly to Inuvo's top and bottom line, accounting for 50 percent of total revenues in 2014. The company has posted positive earnings for the last five consecutive quarters.

"INUV has accumulated $78M in NOLs (Net Operating Losses) that should allow investors to enjoy the company's earnings growth sans taxes for at least the next few years. These NOLs expire between 2022 and 2023," the analysts added.