Benchmark reiterates Buy rating on Magnite stock, citing CTV growth

Investing.com - Benchmark maintained its Buy rating and $31.00 price target on Magnite (NASDAQ:MGNI) stock on Monday, pointing to multiple organic growth opportunities. According to InvestingPro data, the stock is currently trading near its 52-week high of $26.65, having delivered an impressive 89% return over the past six months.

The research firm highlighted that Magnite has several organic tailwinds that should drive incremental growth in the second half of 2025 and into 2026, which it believes are not yet reflected in current consensus estimates.

Benchmark noted that the majority of Connected TV (CTV) buys continue to shift toward programmatic channels, both in the United States and internationally, positioning Magnite to benefit from this trend.

The firm views Magnite as a market share gainer in both CTV and Display, Video and Other (DV+) segments, with incremental revenue above cost remaining above 90%. Benchmark also pointed to Magnite’s improving balance sheet, which it expects will soon be debt-free.

Benchmark added that Magnite’s stock buyback program is ramping up, and any potential upside from Google would be "icing on the cake," reaffirming Magnite as one of its top investment ideas.

In other recent news, Magnite reported impressive financial results for the second quarter of 2025, with earnings per share reaching $0.20, surpassing the expected $0.17. The company’s revenue also exceeded forecasts, coming in at $173.3 million compared to the anticipated $157.44 million. Analysts from Evercore ISI and Needham responded positively, raising their price targets to $27.25 and $25.00, respectively, citing the company’s strong performance and guidance above market expectations. Additionally, Magnite has become Acxiom’s first programmatic sell-side partner, allowing advertisers to utilize both first-party and Acxiom’s third-party data more efficiently. This partnership is designed to reduce costs and redirect more ad spend toward effective media. In another development, Magnite amended its sublease agreement with Zillow Group to include an additional floor in its leased space. These recent developments highlight Magnite’s strategic growth and operational achievements.

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