Digital Media Solutions: BTIG starts coverage with 'buy' on growth promise

DMS

16/12/2020 13:02

** BTIG starts coverage on marketing technology co  DMS.N 
with "buy" rating, price target of $15
    ** The space is projected to grow at a 23% CAGR through 2025
and we believe DMS's insurance business will grow above that
rate as it gains incremental market share - BTIG
    ** Brokerage expects co's brand direct business pct. growth
to be in low-teens over the next 5 years vs 9% growth for peer
QuinStreet (QNST); DMS gross and comparable EBITDA margins to be
higher
    ** Estimates DMS accounts for 2% of all digital ad spending
    ** Two brokerages that cover the stock rate it "strong buy";
their median PT is $14 - Refinitiv data
    ** DMS shares down ~13% this year, as of Tuesday's close

 (Reporting by Lasya Priya M in Bengaluru)
 ((LasyaPriya.M@thomsonreuters.com;))