In a new note, UBS analysts Brian Pitz and Brian Fitzgerald say they spent a day with AOL CEO Tim Armstrong and CFO Artie Minson and came away “impressed” with AOL’s “turnaround efforts.”
Seriously, the note is glowing. Things Pitz and Fitzgerald lurve about AOL:
- Headcount reductions. Since Armstrong took over, AOL is down from 9,000 employees to 5,000.
- Video. AOL is the number two video site on the Web, according to ComScore. That’s actually very impressive – and shameful for Yahoo.
- Project Devil Ads. Advertisers love AOL’s huge ads, and apparently pay very high CPMs for them.
- Local. These guys don’t think Patch is a huge waste of money.
The pair give AOL’s stock a $25 price target.