UPDATE: Goldman Sachs Initiates Neutral on Millennial Media Following Jumptap Acquisition

In a report published Thursday, Goldman Sachs analyst Heath Terry reinstated a Neutral Rating on Millennial Media MM and gave a price target of $7.00. In the report, Goldman Sachs says "We have removed the Not Rated designation from Millennial Media shares. We now rate Millennial Media Neutral with a 12-month price target of $7. The company recently announced the completion of its acquisition of Jumptap, an independent mobile advertising exchange, for $186.6 mn, including $9.5 mn in cash and the remainder in MM stock. The company said it expects to realize cost synergies of $20-$25 mn by 2015 mainly through product development and G&A leverage. While the acquisition expands the company's reach with advertisers and developers and extends its programmatic capabilities, we believe third party ad networks remain challenged as first party advertising platforms and their native advertising models drive innovation and share gains in mobile advertising." Millennial Media closed on Thursday at $6.32.