As reported by RBR-TVBR over the New Year’s weekend, the online car site Autobytel found that 83% of people may be in the market for a new car in the next 12 months. Gilford Securities analyst Jim Boyle calls that figure “amazing” and figures that means auto ads will surge on radio.
“The last 4 quarters have seen 9% ($341MM), 39% ($231MM), 26% ($336MM) and 19% ($366MM) for Q4’09A, Q1’10A, Q2’10A and Q3’10A, respectively. If the actual and prospective foot traffic even partially reflects Autobytel’s level, the car companies and dealers are likely to pour large amounts into radio ads,” Boyle said in a note to clients on Monday (1/3).
The analyst was specifically writing about Entercom Communications. Seeing the growth ahead, he’s now raised his target price for the stock to $15 from his previous $13.