Bullish indicating open at $55-$60, IPO prices at $37
Investing.com - Tigress Financial Partners upgraded MNTN Inc (OTC:MNTN) from Buy to Strong Buy and raised its price target to $36.00 from $28.00. The stock, currently trading at $23.41, sits within its 52-week range of $18.25-$32.49, with analysts’ targets ranging from $25 to $39.
The upgrade comes as MNTN increasingly benefits from growing opportunities in the fast-growing connected TV (CTV) technology-driven market, according to Tigress Financial. The firm cited accelerating adoption, strong SMB-driven first mover advantage, and increasing strategic AI innovation as key factors behind the rating change. According to InvestingPro data, the company maintains a robust gross profit margin of 73.8%, suggesting strong operational efficiency in its technology platform.
Tigress Financial views the recent pullback in MNTN’s share price as a "major buying opportunity" and expects the company’s AI-driven performance TV platform to continue driving accelerating business performance trends. These include increasing gains in Return on Capital, which the firm believes will drive significant increases in Economic Profit and shareholder value creation. InvestingPro analysis suggests MNTN is slightly undervalued at current levels, with a Fair Value assessment supporting potential upside.
The research firm highlighted MNTN’s rapid customer growth, AI-enabled measurement and targeting capabilities, SMB focus, and participation in the expanding CTV market as significant growth catalysts. It also noted the strategic partnership between MNTN and ZoomInfo Technologies as unlocking major opportunities in the B2B connected TV advertising market. With revenue of $259.91M and a Financial Health Score rated as FAIR by InvestingPro, the company shows promising fundamentals.
MNTN targets a $60-$120 billion market opportunity as performance-driven connected TV ad spending continues to grow significantly, outpacing traditional TV and digital channels, according to Tigress Financial. The company’s projected revenue growth of 28% for FY2025 suggests strong execution in capturing this market opportunity.
In other recent news, MNTN Inc reported strong second-quarter earnings, with revenue reaching $68 million, marking a 25% year-over-year growth and a 35% organic growth. This performance surpassed both Evercore ISI and Street estimates by 6%. The company’s EBITDA stood at $14.5 million with a 21% margin, beating expectations significantly by 67% to 75%. Following these robust results, Evercore ISI raised its price target for MNTN to $39, maintaining an Outperform rating. Citizens JMP also adjusted its price target from $30 to $33, citing MNTN’s unique positioning in performance-based TV advertising for small and medium-sized businesses. Additionally, JMP Securities increased its price target to $30, anticipating that MNTN’s first earnings report as a public company would exceed expectations. Both JMP Securities and Citizens JMP highlighted efficiency gains during Amazon (NASDAQ:AMZN) Prime Day, maintaining their Market Outperform ratings with a $30 price target. These developments underscore MNTN’s recent performance and strategic advancements in the advertising sector.
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