Magnite: Managing The Balance Between The Legacy Decline And CTV Growth

Tech and Growth3.6K FollowersFollow5ShareSavePlay(10min)CommentsSummaryMagnite (MGNI) is rated a buy with a $13.7 price target, reflecting a 14% upside potential. MGNI’s CTV segment is its primary growth engine, delivering 32% YoY growth and now comprises over half of total revenue. Financials are improving: FY 2025 contribution ex-TAC grew 10% YoY, aEBITDA rose 18%, and net leverage was reduced to zero. Risks center on legacy DV+ revenue declines potentially offsetting CTV gains, but industry tailwinds support continued CTV margin expansion.

Getty Images Based in the US, Magnite (MGNI) is one of the largest advertising companies providing a sell-side or supply side (SSP) platform to enable publishers monetize their advertising space across channels, such as connected TV (CTV), desktop, or mobile. MGNIThis article was written byTech and Growth3.6K FollowersFollowWe're a long-only asset manager allocating into tech and growth asset classes. Learn more at www.tnginvestments.comAnalyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.