Lake Street reiterates Buy on Magnite, sees ‘no change’ to Disney relationship

Lake Street notes that Magnite (MGNI) shares declined as much as 18% yesterday as certain investors came away with a negative take from comments made by a Disney (DIS) executive on a Digiday podcast released September 30. The podcast was “largely a repurposing” of a September 24 interview with Jamie Power, Disney SVP of Addressable Sales, and discussed how Disney Real-Time Ad Exchange, or DRAX, allows for a direct connection between Disney inventory and the two leading DSPs, namely Google’s (GOOGL) DV360 and The Trade Desk (TTD), the analyst explained. However, the firm says it remains “as convinced as ever of the value publishers gain from working with Magnite” and views the pullback as a buying opportunity as it believes Magnite’s “healthy, unchanged Disney relationship is captured in the company’s guidance.” The firm reiterates a Buy rating and $21 price target on Magnite shares.