UPDATE: Benchmark Starts Magnite (MGNI) at Buy
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Benchmark analyst Dan Kurnos initiates coverage on Magnite (NASDAQ: MGNI) with a Buy rating and a price target of $18.00.
The analyst comments "We are initiating coverage of Magnite (MGNI) with a BUY rating and an $18 per share price target. We can already see eyebrows being raised while we pitch the world’s largest, independent supply/sell-side platform (SSP) as we are grinding steadily towards the end of all things advertising and streaming. Supposing the world does not end in the next 12 months, however, and even assuming a cautious stance on our forecast that is somewhat below the Street, we see the strong combination of Rubicon, Telaria and SpotX (or DV+ and Magnite CTV) trading at ~8x EBITDA (not revenue, EBITDA) on our 2023 numbers. And that is before factoring in any tailwinds from a WBD (Buy: covered by Matt Harrigan) relaunch, Disney’s (DIS: not covered) move towards programmatic, and what we expect could be the most important catalyst in the CTV/streaming space in years, the advent of a Netflix (NFLX: sell, covered by Matt Harrigan) AVOD platform that we suspect will push the programmatic CTV envelope. In the meantime, we would not discount creative partnerships and what should be a robust political environment to help support Magnite’s primary growth driver, somewhat limiting downside risk to estimates."
Shares of Magnite closed at $8.28 yesterday.
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