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Investing.com - Benchmark raised its price target on Magnite (NASDAQ:MGNI) to $30.00 from $24.00 on Tuesday, while maintaining a Buy rating on the advertising technology company ahead of its August 6 earnings report. The stock has shown remarkable momentum, delivering a 60% return over the past year and nearly 50% gain in the last six months. According to InvestingPro analysis, the stock appears to be trading near its Fair Value, with 17 additional exclusive insights available to subscribers.
The research firm cited several factors for its more bullish outlook, including favorable ad market performance since Magnite’s early May report when the company withdrew its annual guidance. Benchmark noted the guidance could potentially be reinstated depending on trade talk outcomes. The company maintains a moderate debt level with a debt-to-equity ratio of 0.83, while demonstrating solid profitability with a gross margin of 62%.
Developments at streaming platforms Netflix (NASDAQ:NFLX), Roku (NASDAQ:ROKU), and Peacock (NASDAQ:CMCSA) have positioned Magnite’s connected TV (CTV) business to exceed lowered expectations, according to the research note.
Benchmark also highlighted Magnite’s improved shareholder base despite high ongoing short interest, and expressed confidence that its new price target does not factor in potential benefits from a Google-DOJ settlement, which it views as a longer-term catalyst.
The research firm expects Magnite to address how artificial intelligence might impact its business, while noting the company’s healthy balance sheet, ongoing share buyback program, and path to becoming debt-free as additional positives. With an overall Financial Health score of "GOOD" from InvestingPro, and net income expected to grow this year, investors can access the complete financial analysis and Pro Research Report, along with detailed metrics for over 1,400 US stocks.
In other recent news, Magnite Inc. reported its first-quarter 2025 earnings, surpassing revenue expectations with a total of $156 million, compared to the forecasted $142.29 million. The company also improved its net loss to $10 million, down from $18 million the previous year. In related developments, Rosenblatt raised its price target for Magnite to $39, citing potential benefits from the upcoming AdTech antitrust remedy phase against Google (NASDAQ:GOOGL). Meanwhile, BofA Securities increased its price target to $22, reflecting confidence in the company’s growth prospects through 2026. Benchmark adjusted its price target to $24, maintaining a Buy rating, and praised Magnite’s management for effectively guiding market expectations. Additionally, Magnite announced a partnership with ITN to innovate local TV advertising, enabling programmatic transactions of live linear ads. This collaboration aims to streamline the purchase of local TV spots, enhancing the advertising landscape.
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