Needham raises Magnite stock price target to $25 on strong Q2 results

Published 07/08/2025, 10:46
Needham raises Magnite stock price target to $25 on strong Q2 results

Investing.com - Needham has raised its price target on Magnite (NASDAQ:MGNI) stock to $25.00 from $18.00 while maintaining a Buy rating following the company’s second-quarter earnings report. The digital advertising technology company, currently trading at $22.48 with a market cap of $3.17 billion, has demonstrated strong momentum with a 41.21% gain year-to-date. According to InvestingPro analysis, the stock is currently trading near its Fair Value.

The supply-side platform reported net revenue excluding traffic acquisition costs of $162 million for the second quarter of 2025, representing a 10% year-over-year increase and exceeding Needham’s estimate by 3%.

Magnite’s adjusted EBITDA reached $54.4 million, up 22% year-over-year and 20% above Needham’s forecast, with margins expanding 310 basis points to 33.6%.

Needham highlighted several potential revenue growth drivers mentioned during Magnite’s earnings call, including new programmatic demand for premium supply from small and medium-sized businesses, live sports, regional sports networks, retail media networks, and supply path optimization trends.

The research firm expressed concerns about higher capital expenditure spending and potential distraction from Magnite suing Google (NASDAQ:GOOGL), which Needham believes could divert attention from the company’s strong fundamental performance.

In other recent news, Magnite Inc. reported its financial results for the second quarter of 2025, surpassing market expectations. The company achieved an earnings per share (EPS) of $0.20, which was higher than the anticipated $0.17. Additionally, Magnite’s revenue reached $173.3 million, exceeding the forecasted $157.44 million. These results highlight the company’s strong performance in the quarter. The positive earnings report comes amid various developments in the market. Investors and analysts closely monitor such earnings reports to gauge the company’s financial health. These recent developments are crucial for understanding Magnite’s current market position.

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