Eric Wold, an analyst from B.Riley Financial, reiterated the Buy rating on Loop Media (LPTV – Research Report). The associated price target is $2.50.
Eric Wold has given his Buy rating to Loop Media based on a blend of strategic management decisions and market potential. Despite the fact that recent quarterly results have fallen short of expectations, Wold perceives positive movements within the advertising demand sphere, which could signal a turnaround for the company. He acknowledges that while the stock has underperformed since its mid-year initiation, management’s actions to streamline costs appear to be in alignment with an anticipated upswing in advertising tailwinds. These tailwinds are expected to drive improved financial outcomes on the road to positive adjusted EBITDA, underpinning the rationale for maintaining a Buy rating, albeit with a lowered price target from $5.00 to $2.50.
Wold’s optimism is also supported by the company’s better-than-expected growth in screen penetration, which indicates an expanding reach for Loop Media’s content. Even though the quarterly addition of screens did not meet initial projections, the substantial increase in partner platform screens was a positive surprise that exceeded Wold’s estimates. This expansion is a foundational element for the company’s future growth, as management plans to ramp up installations. Moreover, Wold points to various drivers that could bolster advertising revenues, such as a more stable advertising environment, the introduction of local advertisements, and the expected influx of political advertising during the upcoming election cycle. These factors, coupled with a conservative adjustment to revenue and AEBITDA estimates, contribute to the analyst’s continued Buy recommendation for Loop Media.
In another report released on December 13, Roth MKM also maintained a Buy rating on the stock with a $2.00 price target.
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Loop Media (LPTV) Company Description:
Interlink Plus, Inc. engages in the business support services to proprietors, entrepreneurs and small business owners by offering outsourced business processes. It operates through the following segments: Travel Agency Assistance Services and Convention Services. The Travel Agency Assistance Services segment provides hotel price quotation and negotiation, contract reviewing, detailed guests’ arrangements, hotel check-in assistance and tradeshow assistance. The Convention Services segment caters to the individual exhibitors by assisting them on booth set up, tradeshow promotion material preparing, entourage interpreter and exhibitor booth personnel arrangements, including bilingual spokespersons, sales associates, narrators and demonstrators, hosts, promoters and models. The company was founded by Zixiao Chen and Duan Fu on May 11, 2015 and is headquartered in Las Vegas, NV.
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