Lake Street Raises Price Target for Arena Group Holdings to $12, Maintains Buy Rating

Lake Street analyst Ryan Meyers has maintained a "Buy" rating and raised the price target for Arena Group Holdings (AREN) from $10 to $12, a 20% increase. The updated rating reflects strong confidence in the company's future performance, supported by consistent "Buy" ratings and a positive outlook for Arena Group Holdings. The average target price for the stock is $12, with a high estimate of $12 and a low estimate of $12, indicating an upside of 84.90% from the current price of $6.49.

July 2, 2025 — Lake Street analyst Ryan Meyers has maintained a "Buy" rating and raised the price target for Arena Group Holdings (AREN) from $10 to $12, a 20% increase. The updated rating reflects strong confidence in the company's future performance, supported by consistent "Buy" ratings and a positive outlook for Arena Group Holdings. The average target price for the stock is $12, with a high estimate of $12 and a low estimate of $12, indicating an upside of 84.90% from the current price of $6.49 [1].

The positive outlook is driven by Arena Group's robust performance in the third quarter of 2024, including a net income of $4.0M and a 287% growth in its affiliate commerce business. Additionally, the company's strategic partnerships and content strength have contributed to heightened investor confidence [1].

Meyers noted that Arena Group's successful reduction in operating expenses by 51% and its improved business dynamics, with a 57% increase in revenue per post, are key drivers of the stock's recent performance. The analyst also highlighted the company's digital expansion, which has fueled growth in its content revenue [1].

While Arena Group's financial metrics, such as gross margin and EBIT margin, still face challenges, the analyst believes that the company's strategic initiatives and digital transformation efforts are poised to drive future growth. Meyers also noted that the company's valuation measures, such as the price-to-sales ratio, suggest a potential opportunity for value investors [1].

In conclusion, Lake Street's positive rating and increased price target for Arena Group Holdings reflect strong confidence in the company's ability to capitalize on its strategic initiatives and digital expansion. However, investors should continue to monitor Arena Group's financial performance and market conditions to make informed investment decisions.

References:
[1] https://www.timothysykes.com/news/the-arena-group-holdings-inc-aren-news-2024_11_15/