Shares in ValueClick Inc. rose more than 4 percent Wednesday after analysts upgraded the online advertising services company, calling it a bargain.

Citi Investment Research analyst Mark Mahaney upgraded ValueClick to “Buy” from “Hold” noting that the stock was undervalued now after losing 30 percent over the two months.

The company is positioned well, he said in a research note, to benefit from fragmented Internet usage and increased advertising spending. Plus, he also said the Westlake Village-based online ad company’s acquisition of Mezimedia in July positions it well for growth in Asia.

Needham & Co. analyst Mark May also upgraded the stock to a “Buy.”

The upgrades also come as Yahoo Inc. today announced the acquisition of San Jose-based ad network BlueLithium for $300 million, fueling industry speculation that ValueClick would be an attractive target for Yahoo, too.

Shares in ValueClick gained 4.1 percent to $21.33 in afternoon trading Wednesday on the Nasdaq.