Omar Dessouky, an analyst from Bank of America Securities, maintained the Buy rating on Magnite (MGNI – Research Report). The associated price target remains the same with $20.00.
Omar Dessouky’s rating is based on Magnite’s strategic positioning in the rapidly growing Connected TV (CTV) advertising market. Magnite is seen as offering valuable exposure to the increasing prevalence of programmatic advertising in CTV, with its current valuation appearing attractive at 9x EV/EBITDA. The company plays a crucial role in consolidating advertiser demand, which supports the growth of ad-supported businesses for publishers. The risk of disintermediation is considered low due to the unique value provided by Magnite’s SpringServe platform, which combines ad serving with a programmatic layer that is challenging to replicate internally.
Furthermore, Dessouky highlights that Magnite is well-positioned to outperform the CTV market over the coming years. Despite a slower growth rate in its CTV segment in early 2023 and 2024, Magnite has achieved significant penetration among major publishers, which sets the stage for revenue growth aligned with publisher ad spend. Additionally, trends in digital advertising, such as the shift towards biddable programmatic models and the increasing importance of first-party data, are expected to drive large-scale adoption of Magnite’s offerings. The potential resolution of Google’s DOJ case could also provide Magnite with opportunities to capture additional market share, further enhancing its growth prospects.
In another report released on March 17, Craig-Hallum also reiterated a Buy rating on the stock with a $20.00 price target.
Based on the recent corporate insider activity of 102 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of MGNI in relation to earlier this year.
Questions or Comments about the article? Write to editor@tipranks.com