Analysts Initiate Coverage On Tremor International Betting On Its Video Revenue Prospects

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.

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Analysts Initiate Coverage On Tremor International Betting On Its Video Revenue Prospects

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