Direct Digital price target raised to $12.50 from $9.50 at Roth MKM

Roth MKM raised the firm’s price target on Direct Digital to $12.50 from $9.50 and keeps a Buy rating on the shares. The management’s long-term goal is to move more of its traffic to direct deals, which could benefit the company’s bottom line by about 200-500bps in EBITDA margins relative to that respective traffic, and as such, there could be a long-term bias to improving margins, the analyst tells investors in a research note.