Magnite (MGNI) Stock Forecast & Price Target

Magnite Inc. reported a robust 23% year-over-year increase in CTV segment net revenues for the fourth quarter of 2024, reaching $77.9 million, driven by strong contributions from key partners such as Roku, LG, and Disney. The firm also indicated a positive recovery trajectory for its DV+ segment, experiencing mid-to-high single-digit growth early in the first quarter of 2025, alongside potential improvements in EBITDA margins of at least 100 basis points for the year. With anticipated adjusted EBITDA growth of 15-20% in a normalized environment and expected margins around 35%, the overall financial outlook for Magnite remains strong.

Magnite Inc. reported 4Q24 results that fell short of expectations, with net revenues of $180.2 million and adjusted EBITDA of $76.5 million, both 2% and 5% below estimates, respectively. The company's disappointing growth in DV+ revenue at just 1% year-over-year also raises concerns about future performance, compounded by uncertainties in the macroeconomic environment that could exert further pressures on the business. Additionally, lowered revenue and EBITDA estimates for FY25 and FY26 indicate a cautious growth outlook, suggesting potential challenges in achieving projected financial targets.