PodcastOne 'Enjoys A Unique Position In The Industry,' Says Bullish Analyst

Shares of PodcastOne Inc PODC were climbing in early trading on Monday.

The company is not just a top-10 U.S. podcast network, but also “the only pure-play podcast US-listed stock,” according to Roth Capital Partners.

The PodcastOne Analyst: Sean McGowan initiated coverage of PodcastOne with a Buy rating and a price target of $4.50.

The PodcastOne Thesis: The company is likely to generate revenue growth of about 23%-25% annually over the next several years, while its adjusted EBITDA is estimated to be “modestly positive in F2024” and approach $6 million in fiscal 2027, McGowan said in an initiation note.

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“Podcasting is a relatively new mass medium and continues to enjoy strong growth, with ad revenues posting a CAGR of 47% from 2015 through 2023 (according to the Internet Advertising Bureau),” the analyst stated. “Consumer awareness and consumption of podcasts continue to grow,” he added.

PodcastOne has “a unique position in the industry,” as it is the only publicly-listed podcast network, which gives the company “an attractive form of 'currency' to use for talent acquisition and M&A,” McGowan wrote.

“We expect its growth to be driven organically by the launch of new podcasts and increases in ad revenue, as well as by the acquisition of existing podcast shows and networks,” the analyst added.

PODC Price Action: Shares of PodcastOne were up 3.8% to $1.87 at the time of publication Monday.

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