Is TechTarget an Automated Bullseye? (TTGT)

This battered digital sales firm might be the Small tech bet of the moment

Maybe it’s time for a bit of little tech. Let’s take, for example, the $738 million digital sales and intelligence company TechTarget (TTGT). Based in Newton, Mass., TechTarget is part storyteller, part analytics company, and part lead-generation engine. It discerns the intent of potential customers by offering high-quality articles, mostly to those interested in purchasing technology. When, say, a chief technology officer reads a TechTarget-published story, how she engages with that piece indicates the interest of that technology officer. 

TechTarget then matches that CTO’s intent to a product for sale and takes a lucrative cut for its trouble.  

TechTarget, like so many other technology companies caught in a world unsure about how it feels about automated tools, has been beaten down. It is trading at a 52-week low. TechTarget was a popular bet for short investors over the past few quarters. But recently, sales have improved, and operating cash flow is growing. In a sure sign, no less than stuffy old UBS, a bank, initiated coverage. 

What we like about TechTarget is that it is a reasonable path value in tech without speculating on serious machine learning. That’s the kind of intent that matters these days.