Magnite (MGNI) Stock Forecast & Price Target

Magnite Inc's fourth quarter financial results highlighted a significant year-over-year increase of 23% in CTV segment revenues, reaching $77.9 million, underscored by contributions from major media players. The stabilization of take rates and the potential for margin growth, alongside an anticipated improvement of at least 100 basis points in EBITDA margins for the upcoming year, suggest a solid foundation for enhanced profitability. Additionally, the expectation of adjusted EBITDA growth of 15-20% in a normalized environment reinforces a positive outlook on the company's financial trajectory.

Magnite Inc reported fourth-quarter results that indicated a year-over-year revenue growth of only 9%, which fell short of estimates by 2%, while adjusted EBITDA also experienced a similar shortfall at 5% below expectations. Additionally, the disappointing revenue growth of 1% year-over-year from their DV+ segment raises concerns about the company's ability to sustain momentum in a challenging macroeconomic environment. Consequently, revised projections for fiscal year 2025 and 2026 indicate continued revenue and EBITDA growth rates that are below previous estimates, suggesting an ongoing slowdown in the firm’s growth trajectory.