Street Has it Wrong, Craig-Hallum Sees Google's Move Benefiting Independent AdTech; (MGNI) (PUBM) (TTD) (RAMP)
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Craig-Hallum analyst Jason Kreyer reiterated a Buy rating and $72.00 price target on Magnite (NASDAQ: MGNI) after Alphabet (NASDAQ: GOOG) announced that it will not be supporting hashed emails as identifier alternatives within its GAM and DV360 products, denouncing this as a viable long-term solution. Other AdTech socks such as LiveRamp (NYSE: RAMP), PubMatic Inc. (NASDAQ: PUBM) and The Trade Desk Inc. (NASDAQ: TTD) were also pummeled, down double-digits.
The analyst thinks this should not have been a surprise and yesterday's move is just a knee-jerk reaction that will quickly correct. He stated "we believe few, if any, expected Alphabet (NASDAQ: GOOGL) to join the UID2 or ATS coalitions. In our view, this creates an inherent bidding advantage for independent AdTech, which can now target logged-in users at better monetization rates. We believe that DSPs (e.g., Trade Desk) will benefit from this, as logged-in users provide better context around preferences, allowing them to better identify target audiences. SSPs (e.g., Magnite, PubMatic) will better monetize inventory for publishers, as the increased consumer data makes them more attractive targets for sophisticated advertisers. Additionally, identity platforms also stand to benefit, such as LiveRamp, which will benefit from increased use of the ATS solution leveraging IdentityLink to improve ad monetization and targeting."
Shares of Magnite closed at $43.25 yesterday.
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