In a report released today, Eric Wold from B.Riley Financial reiterated a Buy rating on Loop Media (LPTV – Research Report), with a price target of $1.50.
Eric Wold has given his Buy rating due to a combination of factors that indicate potential value and opportunities for Loop Media. Despite recent underperformance, Wold sees a significant value in the company’s extensive digital-out-of-home (DOOH) network and believes in its capacity to improve cash flows and gross margins. He points to the company’s proactive steps in reducing overhead by $2M annually, which aligns with the strategic goal of achieving a more favorable cash flow position. Although the stock price target has been lowered from $2.50 to $1.50, the reiteration of the Buy rating suggests confidence in the company’s future performance and strategic initiatives.
Further optimism is derived from the expected increase in advertising revenue as election cycles approach, which traditionally boost spending. Wold also identifies multiple avenues for gross margin expansion, including a shift in content strategy and potential reductions in costs related to music video content and monthly bonuses to location operators. The established scale of Loop Media’s network, difficult for competitors to replicate, combined with the growing demand for DOOH networks, underpins Wold’s belief in the upside value of Loop Media’s stock. However, acknowledging the need for future capital raises, he has adjusted the revenue multiple to set a more conservative 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.
