Susquehanna initiates MNTN stock with positive rating on CTV growth

Published 16/06/2025, 11:52
Susquehanna initiates MNTN stock with positive rating on CTV growth

Susquehanna initiated coverage of MNTN Inc (OTC:MNTN) with a positive rating and a $38.00 price target on Monday, citing the company’s strong position in the performance TV advertising market. The target represents significant upside potential from the current price of $18.51, with analyst consensus targets ranging from $23 to $27.

The research firm highlighted MNTN as a leader in performance marketing for connected TV (CTV), noting that CTV remains one of the fastest-growing segments within digital advertising and is expected to maintain this trajectory for years to come. According to InvestingPro data, the company maintains a healthy 72% gross profit margin and shows strong cash flow generation metrics.

Susquehanna pointed out that while CTV represented 46% of total TV viewing time as of the fourth quarter, it only accounted for 32.5% of TV ad spend, creating a multibillion-dollar opportunity as advertising dollars eventually align with viewership patterns.

The firm identified two key factors that could help MNTN outpace overall CTV market growth: its focus on small and medium-sized businesses that have significantly under-adopted CTV, and advertisers’ increasing preference for performance advertising across digital marketing strategies.

MNTN’s performance TV customer count grew 89% year-over-year in the first quarter of 2025, demonstrating the company’s ability to capture market share in what Susquehanna estimates is a $60 billion to $120 billion serviceable addressable market with 1.5 million potential SMB customers in the U.S. alone. InvestingPro analysis suggests the stock is currently overvalued based on its proprietary Fair Value model, with additional insights and metrics available to subscribers. The company generated $246.27 million in revenue over the last twelve months, with a Financial Health score rated as "FAIR" by InvestingPro analysts.

In other recent news, MNTN Inc. has garnered attention from several analyst firms, reflecting a diverse range of perspectives on its performance and potential. Evercore ISI initiated coverage with an outperform rating, setting a price target of $27.00 and highlighting MNTN’s 2024 revenue of $226 million, which marks a 28% increase from the previous year. The firm emphasized MNTN’s efforts to transform connected TV into a performance marketing channel. Meanwhile, Citizens JMP also issued a Market Outperform rating with a $23.00 price target, praising MNTN’s efficient strategy in attracting and retaining small and medium-sized businesses.

Morgan Stanley (NYSE:MS) took a more reserved approach with an equalweight rating and a $20.00 price target, though it acknowledged MNTN’s potential for a 19% revenue compound annual growth rate from 2024 to 2028. Citi offered a neutral rating with a $22.00 price target, highlighting the company’s pioneering role in connected TV advertising but noting macroeconomic challenges. Both Morgan Stanley and Citi pointed out MNTN’s significant customer base growth, primarily composed of businesses new to television advertising. These recent developments illustrate the varied analyst expectations for MNTN as it navigates the expanding connected TV market.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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