RealNetworks "buy"

06/21/06 - D.A. Davidson & Co.

NEW YORK, June 21 (newratings.com) - Analyst L Alan Davis of DA Davidson initiates coverage of RealNetworks Inc (RNWK) with a "buy" rating. The 12-18 month target price is set to $12.

In a research note published yesterday, the analysts mention that the consumer base of the company’s digital media software and services segment has expanded due to the sustained growth of broadband Internet connections. RealNetworks has a robust balance sheet and is scheduled to receive $241 million from Microsoft over the forthcoming four quarters, the analyst says.