MGNI Stock Heads For Another Month In Green: Magnite Gets Price Target Boost As Google Ad-Tech Changes Open New Growth Path

• BofA raised Magnite’s price target to $38 from $25, implying 48% upside. 
• The firm expects Google’s ad-tech remedies to increase Magnite’s open-web advertising share from 6% to 8%-10%. 
• A U.S. judge ordered Google to change its online ad auction practices and improve compatibility with rivals. 

Magnite Inc. (MGNI) stock is heading for another monthly gain after BofA raised its price target, pointing to better growth prospects. The firm expects Google’s ad-tech changes to push more advertising money toward rivals like Magnite, increasing its share of open-web ads. 

Magnite stock edged 0.4% higher in Wednesday’s premarket. The stock has climbed 9% in September and is heading for a second straight month of gains. 

BofA Raises Magnite Price Target To $38 

BofA raised Magnite’s price target on the advertising technology company to $38 from $25 while maintaining a Buy rating. The new price target implies a 48% upside to the stock’s last closing price. 

Alphabet Inc,’s (GOOGL, GOOG) Google is at the center of the opportunity. BofA believes proposed remedies in the U.S. Department of Justice's ad-tech case could shift advertising dollars away from Google's AdX exchange and toward competing platforms, including Magnite.

The firm expects Magnite to gain if advertisers and publishers move more spending to other platforms. BofA estimates Magnite’s share of open-web display ads could rise to 8%-10% from about 6%, helping the company capture more of the market and boost growth. 

Judge Orders Google To Loosen Ad-Tech Rules 

Earlier this month, a U.S. District Judge ordered Google to loosen some rules for its online ad auctions and make its technology work better with competing platforms. The court did not require Google to sell its AdX advertising exchange, as the Department of Justice had requested. However, it ordered Google to separate parts of its publisher ad server from AdX.

A compliance monitor will track Google’s progress under the changes for six years. Google plans to appeal parts of the ruling. Reacting to the judgment, B. Riley raised its price target for Magnite to $30 from $27 while keeping a ‘Buy’ rating.

The firm said Google’s planned ad-tech changes are similar to what the DOJ sought and could help independent platforms like Magnite compete more effectively. However, appeals and a slow rollout could push gains in market share and financial performance to 2028. 

MGNI Stock: Retail View 

On Stocktwits, retail sentiment around the stock jumped to ‘bullish’ from ‘bearish’ territory the previous day. 

A user said, “$MGNI going to be HUGE. Wall Street is slowly figuring it out.”

MGNI stock has gained nearly 18% in the past twelve months. 

Also see: NKE Ticks Higher Ahead Of Q1 As Short Interest Hits Record 87M Shares — Could Earnings Squeeze The Bears?

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