On Thursday, Magnite (NASDAQ:MGNI) shares received a positive outlook from RBC Capital, with an increase in the price target to $17.00 from the previous $15.00, while the Outperform rating was sustained.
The firm's optimism is based on robust results driven by Connected TV (CTV) performance, particularly due to the increased viewership during March Madness, and success in the company's ad-serving business.
Additionally, the programmatic advertising platform, DV+, performed well, reflecting the benefits of company-specific drivers in an improving advertising environment.
The recent financial performance of Magnite has led to an upward revision of the forecasts for the calendar year 2024, with expectations for both growth and profitability being raised. The strong quarterly results were attributed to the company's strategic initiatives and favorable market conditions, which have started to yield incremental benefits.
RBC Capital highlighted the importance of live sports events like March Madness in driving the demand for CTV, which has been a significant factor for Magnite's success. The company's ad-serving business also contributed to the positive performance, securing new wins and strengthening its market position.
Looking forward, RBC Capital anticipates further acceleration in the latter half of the year, supported by macroeconomic stabilization and easier comparative figures from the previous year. The firm's maintained Outperform rating indicates confidence in Magnite's potential for continued growth and market leadership.
The raised price target to $17 from $15 reflects the firm's reassessment of Magnite's value based on the latest financial data and market trends. The improved guidance for the coming year suggests that Magnite is well-positioned to capitalize on the opportunities within the digital advertising sector.
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