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Investing.com - Evercore ISI has raised its price target on MNTN Inc (OTC:MNTN) to $39.00 from $27.00 while maintaining an Outperform rating following the company’s strong second-quarter earnings report. The stock, currently trading at $31.47, is near its 52-week high of $32.49. InvestingPro analysis shows the stock is currently overvalued based on its Fair Value model.
MNTN reported revenue of $68 million, representing 25% year-over-year growth or 35% organic growth, which exceeded both Evercore ISI and Street estimates by 6%. The company’s EBITDA reached $14.5 million with a 21% margin, beating expectations by 67% to 75%. This performance contributes to the company’s trailing twelve-month revenue of $246.27 million.
The company’s third-quarter revenue and EBITDA guidance also came in above Street expectations, marking a successful first earnings report as a public company. Organic revenue growth decelerated slightly from mid-40% in Q1 to mid-30% in Q2, while EBITDA margin improved by 740 basis points year-over-year.
Evercore ISI highlighted three key strengths in MNTN’s performance: robust organic revenue growth expected to continue in Q3, strong customer growth with active Performance TV customers increasing 85% year-over-year in Q2, and improving gross margins which rose 720 basis points year-over-year.
The divestiture of the Maximum Effort marketing agency contributed to margin improvements, while Evercore ISI noted that new hosting cost leverage from a change in cloud vendor and media cost efficiencies should drive further gross margin expansion in the second half of the year and beyond. InvestingPro data shows the company maintains a strong gross profit margin of 72.03% and carries an overall Financial Health rating of GOOD, with additional metrics and insights available to subscribers.
In other recent news, MNTN Inc is preparing to announce its first earnings report as a public company, with expectations set high by JMP Securities. The firm has raised its price target to $30 from $23, anticipating results that may surpass both their own and consensus projections. Additionally, Citizens JMP has increased its price target for MNTN to $33, maintaining a Market Outperform rating, highlighting the company’s unique positioning in performance-based TV advertising for small and medium-sized businesses. MNTN’s efficiency improvements during Amazon (NASDAQ:AMZN) Prime Day were noted by both JMP Securities and Citizens JMP, with both firms reiterating their Market Outperform ratings and maintaining a $30 price target.
Tigress Financial Partners has initiated coverage on MNTN with a buy rating and a $28 price target, emphasizing the company’s potential in the Connected TV advertising market. The firm praised MNTN’s approach to democratizing access to premium TV inventory and its innovative use of AI-powered audience targeting. Tigress also noted MNTN’s revenue growth and margin expansion as evidence of strong execution and operational efficiency in its Q1 2025 results. These developments reflect a positive sentiment from analysts regarding MNTN’s strategic positioning and future prospects in the advertising technology sector.
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