Magnite (MGNI) Stock Forecast & Price Target

Magnite Inc demonstrated robust growth in its CTV segment, reporting a 23% year-over-year increase in net revenues to $77.9 million for the fourth quarter of 2024, underscored by strength from significant partnerships and political advertising. The company's stabilization in take rates, coupled with a favorable trajectory in EBITDA margins—projected to improve by at least 100 basis points—indicates a strengthening profitability outlook. Additionally, anticipated growth in adjusted EBITDA of 15-20% and expected EBITDA margins around 35% suggest a promising financial trajectory in a normalized market environment.

Magnite Inc reported 4Q24 net revenues of $180.2 million and adjusted EBITDA of $76.5 million, both showing a year-over-year increase of 9%, but falling short of estimates by 2% and 5%, respectively, indicating operational challenges. Additionally, revenue growth in the company's DV+ segment was disappointing at just 1% year-over-year, which raises concerns regarding its competitive positioning in the market. Given the downward revision of revenue and EBITDA estimates for FY25 and FY26, alongside potential macroeconomic pressures, there are fundamental concerns about Magnite's ability to sustain growth and profitability moving forward.