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Raymond (NSE:RYMD) James initiated coverage of MNTN Inc (OTC:MNTN) Monday with an outperform rating and a $27 price target, representing a 46% upside from the current price of $18.51. The stock, which has traded between $18.25 and $32.49 over the past 52 weeks, is being recognized for its position in connected television advertising and focus on small and medium-sized businesses.
The investment firm highlighted MNTN’s offering in connected television (CTV) and performance advertising, which it described as "the two most attractive growth areas in digital advertising." Raymond James also noted the company’s "first-mover advantage among an underserved customer segment in SMBs." The company’s strong market position is reflected in its impressive 72% gross margin and annual revenue of $246.27 million. InvestingPro analysis indicates the company maintains a FAIR financial health score.
MNTN is expected to maintain revenue growth of approximately 20% year-over-year due to its early scaling stage, according to the research note. The firm projects the company will reach EBITDA margins of 30% in the medium term and 35-40% in the long term.
Raymond James applied a 25x 2026 estimated EV/EBITDA multiple to arrive at its price target, which it said is comparable to valuations for leading adtech companies and marketing software firms. The valuation reflects the firm’s view that MNTN’s financial profile should place it among premium-valued adtech companies.
The firm assigned MNTN a "Moderately Aggressive Risk/Wealth Accumulation suitability rating," citing the "rapidly changing dynamics" of the adtech industry. For deeper insights into MNTN’s valuation metrics and growth potential, including exclusive ProTips and detailed financial analysis, check out InvestingPro.
In other recent news, MNTN Inc has been the focus of several analyst firms, each offering their perspective on the company’s performance in the connected TV (CTV) advertising market. Evercore ISI initiated coverage with an outperform rating and a $27.00 price target, highlighting MNTN’s mission to transform CTV into a performance marketing channel. The company reported $226 million in revenue for 2024, marking a 28% year-over-year growth, and served over 2,200 active small and medium-sized business (SMB) advertising customers. Citizens JMP also gave MNTN a market outperform rating with a $23.00 price target, emphasizing the company’s efficient attraction and retention of SMBs.
Susquehanna initiated coverage with a positive rating, citing MNTN’s strong position in the performance TV advertising market and its potential to outpace the overall CTV market growth. Morgan Stanley (NYSE:MS) offered an equalweight rating with a $20.00 price target, projecting a 19% revenue compound annual growth rate from 2024 to 2028. Citi, meanwhile, initiated coverage with a neutral rating and a $22.00 price target, noting the company’s pioneering role in performance-based CTV advertising and the potential for a 17% revenue growth rate over five years.
These recent developments underscore MNTN’s strategic focus on SMBs and its growing presence in the CTV advertising space. The company’s ability to attract new advertisers and expand its customer base is seen as a key factor in its growth potential. Analysts have highlighted both opportunities and challenges, with varying ratings reflecting different levels of confidence in MNTN’s future performance.
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