Magnite initiated with an Outperform at Scotiabank

Scotiabank initiated coverage of Magnite (MGNI) with an Outperform rating and $22 price target as the firm initiated coverage of sic companies in the advertising technology space. In AdTech, Magnite’s end-to-end capabilities and leadership in CTV place it in “an enviable position” to capture incremental ad spend as advertisers and publishers increasingly seek transparency and efficiency, the analyst tells investors. The current valuation underappreciates the company’s growth potential, particularly in connected television, which “remains underpenetrated and offers a significant runway for expansion,” the analyst added.