Is Magnite (MGNI) Undervalued Following Its Viasat Aviation Partnership?

Magnite’s Viasat partnership opens a new ad channel in the sky

Magnite (MGNI) is back in focus after announcing a partnership with Viasat Aviation, bringing programmatic advertising to in-flight Wi-Fi and seat-back entertainment across thousands of aircraft worldwide.

See our latest analysis for Magnite.

The Viasat announcement comes after a strong rebound in Magnite’s share price, with a 30.32% 1 month share price return and 48.67% 3 month share price return, while the 1 year total shareholder return is still down 17.41%. This indicates improving momentum from a lower base.

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With Magnite’s share price rebounding sharply in recent months and the Viasat deal widening its reach, the key question now is whether the stock still trades at a discount or if the market is already pricing in future growth.

Most Popular Narrative: 22% Undervalued

The most followed Magnite narrative pegs fair value at $22.21 per share, compared with the recent $17.32 close, which is a material gap for investors to consider.

The analysts have a consensus price target of $22.21 for Magnite based on their expectations of its future earnings growth, profit margins and other risk factors.

However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $39.0, and the most bearish reporting a price target of just $13.0.

Read the complete narrative.

Curious what has to happen for Magnite to justify that higher value? The narrative refers to specific revenue growth, margin shifts and a much richer future earnings multiple. The full breakdown sets out exactly which assumptions need to align.

Result: Fair Value of $22.21 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, there are still clear risks to the Magnite narrative, including heavy reliance on large CTV streamers and potential delays or setbacks in regulatory changes that some investors expect.

Find out about the key risks to this Magnite narrative.

Next Steps

If this mix of potential rewards and risks around Magnite leaves you undecided, take a moment to review the key data points yourself, then move quickly to shape your own view using the 2 key rewards and 1 important warning sign.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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