Magnite stock surged today following a note from B. Riley analyst Daniel Day, who believes that the recent sell-off of stocks related to connected TV (CTV) is overdone and that Magnite could see a significant upside, with a price target of $15 per share. Day acknowledges that CTV stocks, including adtech players like Magnite, had a good run during the pandemic, but have since declined as the trend faded.
Magnite’s growth has slowed down, and for Q1 2023, the company expects to generate adjusted CTV revenue of $42.5 million to $44.5 million, implying only 5% YoY growth at best. While the stock’s attractive valuation at 2 times sales could lead to upside, it will likely remain stagnant until investors see a clear path for the company to return to better growth.
