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Investing.com - Rosenblatt raised its price target on Magnite (NASDAQ:MGNI) to $39.00 from $18.00 on Monday, while maintaining a Buy rating on the advertising technology company’s shares. The stock, which has surged nearly 60% over the past year and is trading near its 52-week high of $21.29, has shown remarkable momentum with a market capitalization of approximately $3 billion.
The investment firm cited potential substantial benefits for Magnite from the upcoming AdTech antitrust remedy and penalty phase against Google (NASDAQ:GOOGL), which could materialize as early as 2026.
Rosenblatt believes these potential benefits are not currently reflected in Magnite’s stock price, prompting the significant upward revision in its price target.
The firm’s analysis incorporates what it describes as "conservative and beatable antitrust assumptions," including expected EBITDA improvements from behavioral remedies and potential proceeds from civil litigation or settlements.
Rosenblatt’s optimism stems from its assessment that the ruling against Google was strong and likely to withstand potential appeals, creating a favorable environment for Magnite in the digital advertising ecosystem.
In other recent news, Magnite reported its first-quarter 2025 earnings, surpassing revenue expectations with $156 million, compared to the forecasted $142.29 million. The company also improved its net loss to $10 million from $18 million a year earlier, and adjusted EBITDA rose by 47%, showcasing enhanced operational efficiency. In a strategic move, Magnite has partnered with ITN to innovate local TV ad execution, allowing programmatic transactions for live linear ads from local TV stations. This collaboration aims to streamline the $21 billion local TV advertising market in the US, enhancing accessibility and efficiency for advertisers.
Analysts have been adjusting their positions on Magnite, with BofA Securities raising the company’s price target to $22, citing increased confidence in its growth prospects. Conversely, Benchmark lowered its price target to $24, acknowledging the company’s adept handling of market expectations despite a modestly reduced forecast. The analysts also noted Magnite’s potential benefits from a Google adtech ruling, suggesting it could significantly enhance margins.
Magnite’s management has expressed optimism about future growth, particularly in the connected TV (CTV) and programmatic advertising sectors, despite maintaining a cautious outlook due to potential economic uncertainties. The company’s recent earnings call highlighted strong performance in CTV and DBplus segments, contributing to the overall revenue increase.
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