BofA Boosts MGNI Price Target Amid Google Ad-Tech Overhaul
Magnite Inc.'s (MGNI) stock is expected to continue its upward trend after Bank of America raised its price target to $38, implying a 48% upside. This move comes as Google's ad-tech changes are set to increase Magnite's share of open-web advertising from 6% to 8-10%. A U.S. District Judge has ordered Google to loosen some rules for its online ad auctions and improve compatibility with competing platforms.
BofA believes that these changes will shift advertising dollars away from Google's AdX exchange and toward rival platforms, including Magnite. The firm estimates that Magnite's share of open-web display ads could rise to 8-10% from about 6%, helping the company capture more market share and boost growth.
Magnite stock has climbed 9% in September and is heading for a second straight month of gains. BofA maintains a 'Buy' rating on the stock, despite some potential delays in Google's ad-tech changes and appeals from the tech giant.