Analyst Laura Martin of Needham maintained a Buy rating on Magnite, retaining the price target of $25.00.
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Laura Martin’s rating is based on Magnite’s impressive third-quarter 2025 performance, where the company reported net revenues of $166.8 million, marking a 12% year-over-year increase and exceeding expectations by 2%. Additionally, the adjusted EBITDA reached $57.2 million, reflecting a 13% year-over-year growth and surpassing estimates by 8%, with a margin improvement to 34.3%.
A significant factor in this positive outlook is the robust growth in Connected TV (CTV) revenues, which accounted for 45% of Magnite’s total revenues in the quarter, showing a 25% increase from the previous year. The stability of CTV cost-per-thousand impressions (CPMs) across supply tiers also contributes to the company’s strong position. Furthermore, Magnite’s strategy of selling ad units on a CPM basis to performance marketers, who then resell on a CPA basis, presents an opportunity for capturing additional margins. The competitive dynamics between demand-side platforms (DSPs) and supply-side platforms (SSPs) suggest potential strategic advantages, such as a merger with The Trade Desk (TTD), to enhance market positioning.