Magnite (MGNI) Stock Forecast & Price Target

Magnite Inc demonstrated strong growth in its CTV segment, achieving a 23% year-over-year increase in net revenues to $77.9 million in 4Q24, driven by contributions from key players in the industry such as Roku and Disney. Additionally, the company's commentary indicated a recovery in its DV+ segment, projecting initial EBITDA margin improvement of at least 100 basis points for the year, which alongside anticipated mid-teens growth in CTV ex-TAC revenues signifies a favorable margin expansion outlook. With expectations of adjusted EBITDA growth between 15-20% in a normalized environment and estimated EBITDA margins around 35%, Magnite's financial trajectory appears promising.

Magnite Inc's fourth quarter results indicated a year-over-year revenue growth of only 9%, which fell short of expectations, while the Adjusted EBITDA reached $76.5 million, also underperforming forecasts and reflecting a declining margin. Additionally, disappointing growth of the DV+ revenue segment at only 1% year-over-year raises concerns about the company's ability to capitalize on market opportunities in an increasingly competitive landscape. The downward revision of fiscal year 2025 and 2026 revenue and EBITDA estimates further underscores a cautious outlook on Magnite's financial performance amid ongoing macroeconomic uncertainties.