UPDATE: B.Riley Starts Digital Turbine (APPS) at Buy, 'A Revenue Synergies Powder Keg Close to Ignition'

B.Riley analyst Daniel Day initiates coverage on Digital Turbine (NASDAQ: APPS) with a Buy rating and a price target of $29.00.

The analyst comments "We are initiating coverage of Digital Turbine, Inc. (APPS) with a Buy rating and a $29 price target, representing a 10.0x FY24E (12 months ended March 31, 2024) EV/EBITDA multiple. APPS is a leading mobile app growth and monetization platform offering a suite of products to assist app publishers and developers in user acquisition and monetization. With the stock ~80% off its 2021 highs, we believe investors have unfairly bucketed APPS into a group of high-growth story stocks lacking near-term free cash flow generation. We model a 27% five-year revenue CAGR, with EBITDA/FCF projected to grow even faster due to operating leverage. Accordingly, we view APPS as an ideal name for investors looking for high-quality, mispriced stocks that have been unfairly punished amidst the fog of the recent tech drawdown. We believe that the stock remains relatively unknown among larger institutions and that the elevated trading volume in recent years has been largely retail driven. As such, we expect that a rotation from retail to institutional owners (with longer investment time horizons) over the next few years will reduce volatility and better align the stock price with APPS's strong business fundamentals."

For an analyst ratings summary and ratings history on Digital Turbine click here. For more ratings news on Digital Turbine click here.

Shares of Digital Turbine closed at $17.00 yesterday.

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