Craig-Hallum analyst Jason Kreyer notes that Magnite (MGNI) shares came under pressure earlier this month after Disney (DIS) representatives disclosed in a podcast they were removing Magnite from pockets of Disney ad inventory and pursuing direct relationships with The Trade Desk (TTD) and Google (GOOGL). The firm believes today’s announcement of a two-year renewal of the Magnite and Disney relationship “begins to unwind that confusion” while taking the partnership into its seventh and eighth years. Despite the fact that Magnite maintains a role in DRAX and the Disney relationship is “stronger than ever,” shares are 12% lower than late September and are “seeing a lackluster response to today’s renewal in midday trading,” adds the analyst, who sees this as an opportunity for investors and maintains a Buy rating and $20 price target on Magnite shares.
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