Magnite initiated with an Outperform at Wolfe Research

Wolfe Research initiated coverage of Magnite with an Outperform rating and $16 price target as part of a broader sector note launching coverage of Global Internet names. The company generated very healthy top-line growth in the recent past, but its revenue growth decelerated meaningfully last year – down 17 points – and investors now question its ability to accelerate growth to mid/high teens rate, the analyst tells investors in a research note. Wolfe adds however that Magnite is very well-positioned to continue to gain market share in the near to medium term, driven by supply side consolidation despite new walled gardens entering the industry.