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Investing.com - ATB Capital Markets initiated coverage on Zoomd Technologies Ltd (CVE:ZOMD) with an Outperform rating and a price target of C$4.00.
The research firm cited Zoomd’s position in the fast-growing mobile user acquisition segment of the digital advertising market as a key factor in its positive outlook.
ATB Capital Markets noted that while digital advertising is growing at mid-single digits and outpacing both GDP and global retail growth, mobile user acquisition is expanding even faster, with an expected annual growth rate exceeding 10% for the next several years.
The firm highlighted that in-app consumer spending has reached nearly $300 billion according to Sensor Tower data, suggesting Zoomd needs to capture only a small portion of mobile user acquisition spending to significantly grow its business.
ATB Capital Markets expressed confidence that with consistent performance, Zoomd has potential to achieve higher valuation multiples on increased EBITDA estimates over the next three years.
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