Craig-Hallum bullish on Magnite as Netflix validates faster path to programmatic

Craig-Hallum analyst Jason Kreyer notes that Netflix (NFLX) announced on Tuesday it wrapped up a successful 2024 UpFront season, citing growth in ad commitments from key advertisers and verticals. Importantly for Magnite (MGNI), Netflix announced private marketplace deals are now available through The Trade Desk (TTD) and Google’s (GOOGL) DV360, which implies that Magnite, its exclusive SSP, is making this inventory available, the firm says. In fact, PMP deals are currently available in US, Canada, Brazil and Mexico, with additional global markets to be added in the coming months. In Craig-Hallum’s view, Netflix is progressing along a more accelerated path of programmatic evolution, which creates the potential for a higher, and earlier financial contribution to Magnite. The firm adds that it has considerably more confidence in the partnership and financial contribution. Craig-Hallum has a Buy rating on Magnite and a price target of $20 on the shares.