Analyst Allen Klee of Maxim Group reiterated a Buy rating on Dolphin Entertainment (DLPN – Research Report), with a price target of $6.00.
Allen Klee’s Buy rating for Dolphin Entertainment is based on a multitude of strategic and financial factors. The addition of GlowLab Collective to Dolphin’s portfolio is seen as a critical strategic move, diversifying its social influencing sector within the beauty and skincare niche—a market well-matched for influencer marketing. This expansion aligns with Dolphin’s growth strategy and leverages the company’s existing marketing strengths. Further, the anticipation of Dolphin’s adjusted EBITDA turning positive in 2024, alongside projected significant growth, contributes to the positive outlook. Dolphin’s planned emphasis on acquiring equity positions in products and entertainment they can support with marketing adds another layer of potential revenue growth.
Financially, the company appears well-capitalized, ending the third quarter of 2023 with a solid cash position and having raised additional funds through an equity raise. The current enterprise value to EBITDA multiple, based on Klee’s estimates for the year 2025, suggests that the stock is undervalued. The target price set by Klee is anchored on a multiple that reflects the company’s growth potential, which, if realized, signifies a significant upside from the current trading levels. Additionally, Dolphin’s planned acquisition strategy and focus on organic growth, cross-selling, and obtaining equity stakes in the projects it markets, are expected to drive future revenue and provide opportunities for consistent exits, bolstering the case for a Buy rating.
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Dolphin Entertainment (DLPN) Company Description:
Dolphin Entertainment, Inc. is an independent entertainment marketing and premium content development company, which engages in the provision of marketing and publicity services to major film studios, and many of the independent and digital content providers. It operates through the following segments: Entertainment Publicity & Marketing and Content Production. The Entertainment Publicity & Marketing segment includes 42West and provides clients with diversified services, including public relations, entertainment content marketing and strategic marketing consulting. The Content Production segment comprises of Dolphin Entertainment, Dolphin Films, and Dolphin Digital Studios and specializes in the production and distribution of digital content and feature films. The company was founded on March 7, 1995 and is headquartered in Coral Gables, FL.
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