Advertising platform Magnite climbs as Berenberg starts with 'buy'

Magnite

22/09/2021 17:57

** Shares of advertising platform  MGNI.O  up 7.1% at $30.41
after Berenberg initiates coverage with "buy" rating
    ** Berenberg believes MGNI's robust technology creates a
significant barrier to entry, feeding a cycle of growth as
buyers consolidate their sell-side platforms (SSP); views MGNI
as a superior SSP solution
    ** Adds, MGNI's early leadership in connected TV (CTV)
should help sustain top-line growth as technology adoption
accelerates; estimates MGNI's CTV contribution to grow at a 38%
CAGR and represent more than 50% of revenue by 2025
    ** CTV technologies integrate internet and interactive
digital advertising services into smart TVs and receivers
    ** In Feb, MGNI bought video advertising group SpotX from
European broadcaster RTL Group  RRTL.DE  for $1.17 billion, to
create a leading interactive advertising platform  urn:newsml:reuters.com:*:nL8N2KB1MP
    ** Brokerage sees company as well-positioned to benefit from
changes in privacy regulations and industry wide consolidation
trends
    ** Sets PT of $37, implying an upside of ~30.3% as of
stock's last close
    ** Eight of 9 brokerages rate the stock "buy" or higher and
1 "hold"; their median PT is $46 - Refinitiv data
    ** As of last close, stock had fallen 7.6% YTD

 (Reporting by Devik Jain in Bengaluru)
 ((Devik.Jain@thomsonreuters.com; within U.S. +1 646 223 8780;
outside U.S. +91 80 6182 2062; ;))