In a report released today, Laura Martin from Needham maintained a Buy rating on Magnite (MGNI – Research Report), with a price target of $15.00.
Laura Martin has given her Buy rating due to a combination of factors that indicate Magnite’s strong performance and promising outlook. Specifically, Martin highlights Magnite’s robust financial results for the first quarter of 2024, where the company not only reported a significant year-over-year revenue increase but also surpassed estimated earnings before interest, taxes, depreciation, and amortization (EBITDA) by a considerable margin. The revenue, excluding traffic acquisition costs (ex-TAC), climbed by 12% from the previous year, outperforming estimates by 5%, while the adjusted EBITDA experienced a 7% rise, substantially exceeding estimates by 38%. This financial strength is particularly notable in the EBITDA margin, which was 460 basis points higher than expected.
Furthermore, Magnite’s guidance for the full year of 2024 suggests an acceleration in revenue growth and an improvement in EBITDA margins, signaling management’s confidence in the company’s future performance. The enthusiasm is partly driven by the increased revenue from connected TV (CTV), especially from live sports events, which have proven to be a significant driver of growth. The capacity for live sports to attract unplanned viewership and to leverage programmatic systems for real-time ad placement positions Magnite favorably in the market, with expectations for this revenue stream to expand further. These factors, combined with a strategic focus on growing the CTV segment, form the basis of Martin’s positive outlook on Magnite’s stock.
TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.
Magnite (MGNI) Company Description:
Magnite, Inc. offers technology solutions that automate the purchase and sale of digital advertising inventory. Publishers use its technology to monetize their content across multiple platforms, including CTV, online video, audio, and display. Moreover, ad agencies and brands leverage Magnite’s platform to access brand-safe, high-quality ad inventory.
Read More on MGNI:
