Internet media company JumpTV Inc. (JTV/TSX ), which offers live television programming from around the world, has made several moves in recent weeks that make it an attractive investment option, according to Steven Frankel at Canaccord Adams.
These include raising US$100-million in a secondary offering, adding several new channel partners, making a content-sharing deal with Joost and announcing that it will shift to an advertising model in North America, the analyst said in a research note.
Mr. Frankel has a "buy" recommendation on the stock and boosted his target price to $11 from $8.75, which represents upside of more than 44%.
He noted that while the shift to an advertising-based model from one focused on paid subscribers will hurt revenue in the short term, it should lead to higher profits in the long-run.
