- JMP Securities analyst Ronald Josey initiated coverage of Tremor International Ltd TRMR with an Outperform rating and a $30 price target, implying a 33.4% upside.
- The shares currently trading at 8.9x estimated 2022 EBITDA, a significant discount to peers with an average multiple of 64.7 times, implying minimal downside to shares given Tremor's exposure to video and its relatively clear view to consistent mid-to-high teens growth.
- Tremor was well-positioned to benefit from the tailwinds of the $149 billion of TV ad budgets that were following users online, Josey stated.
- Needham analyst Laura Martin initiated coverage of Tremor International with a Buy rating and $28 price target, signifying 24.5% upside.
- Martin loved that 68% of 2020 revenues came from video, including CTV. Additionally, Tremor had exclusive rights to some News Corp NWSA video ad units through the end of 2022.
- However, Martin was worried that 10% of Tremor's revenue was shrinking.
- Raymond James analyst Andrew Marok initiated coverage of Tremor International with an Outperform rating and a $27 price target, implying a 20.1% upside.
- Marok saw multiple positive trends for Tremor, including attractive growth in the programmatic ad market, particularly in video and CTV formats, the firm's expectation for double-digit long-term revenue growth, and 35%+ EBITDA margins.
- Marok believed risk-reward was attractive at these levels given the company's valuation, which was a discount to similarly scaled open-web adtech peers.
- Stifel analyst John Egbert initiated coverage of Tremor International with a Buy rating and $26 price target, implying a 15.6% upside.
- Tremor's advertising technology platform for both digital advertisers and publishers on the open Internet focused on fast-growing opportunities within digital video and Connected TV (CTV) advertising.
- Tremor faced significant competition for ad spend from demand-side platforms operated by Alphabet Inc's GOOG GOOGL, Google, and The Trade Desk Inc TTD.
- It also faced competition for access to premium video ad inventory from Magnite Inc MGNI and PubMatic Inc PUBM.
- The company's profitability compares favorably to adtech peers, and Egbert expects Tremor to maintain about 40% adjusted EBITDA margins.
- Price action: TRMR shares traded lower by 1.78% at $22.09 in the market session on the last check Tuesday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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