Needham has raised its price target on Magnite to $30 from $25, citing a U.S. court ruling that imposes behavioral restrictions on Google’s advertising technology operations.
The firm maintained a Buy rating on Magnite shares, which were trading at $24.88 in recent activity, down 2.01% on the day. Scotiabank similarly lifted its target to $27 from $17. Magnite’s stock has surged 81% over the past six months.
The court decision is expected to redirect a portion of Google’s ad revenue to competitors such as Magnite, a sell-side ad-tech platform. Needham estimates that a 1% shift in revenue from Google’s DV+ platform to Magnite could add $50 million in ex-TAC net revenues annually.
For the second quarter of fiscal 2026, Magnite reported non-GAAP earnings of $0.26 per share, exceeding the $0.25 forecast, and revenue of $192.8 million, surpassing the $179.2 million estimate. Year-over-year metrics showed a 30% increase in EBITDA, a 17% rise in contribution ex-TAC, and a 36% acceleration in connected TV advertising.
Needham also raised its fiscal 2027 net revenue estimate to $842 million and increased its fiscal 2028 outlook. The firm’s revised target implies a potential 20% upside from current levels. Five analysts have recently raised their earnings estimates for Magnite, according to InvestingPro data.
