Rumble initiated with a Neutral at Wedbush

Wedbush initiated coverage of Rumble with a Neutral rating and $8 price target. Rumble is a social video platform and cloud services provider with a large and under monetized user base. The firm thinks there is significant upside potential as Rumble works to improve monetization on the platform and ARPU trends closer to more mature peers. With management’s focus now shifting to monetization, Wedbush sees a range of outcomes as every incremental dollar of ARPU represents material revenue and profitability growth. The firm’s base case scenario assumes advertising ARPU of $1.25 per MAU by 2026, while its bull case assumes a faster pace of advertiser adoption and ARPU of $2.00. In its bull case scenario, Wedbush thinks shares could be worth $11.