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Morgan Stanley keeps MNTN rating at Equal-Weight with $25 PT increase.
ByAinvest
Wednesday, Aug 6, 2025 12:31 pm ET1min read
Morgan Stanley keeps MNTN rating at Equal-Weight with $25 PT increase.
In a recent update, Morgan Stanley has maintained its Equal-Weight rating for MNTN, Inc. (NYSE: MNTN) while increasing its price target to $25.00. The fintech company, which specializes in TV adtech, received this update following its second-quarter earnings report, which included a non-GAAP EPS of -$0.65, missing by $0.68, and revenue of $67.8 million, beating by $3.26 million [2].The investment bank noted that while MNTN's revenue growth was strong, the company faced challenges in achieving its EPS targets. The gross margin improved significantly to 77% from 70% in the prior year, and adjusted EBITDA grew by 92% year-over-year to $14.5 million. However, these improvements did not offset the earnings shortfall, leading to a reduction in the EPS target.
Morgan Stanley acknowledged the company's efforts in expanding its offerings and improving its financial health, but expressed caution due to the company's rich valuation. The firm noted that MNTN's stock is currently trading at a valuation multiple that is higher than its peers, which could pose risks to investors.
Despite the challenges, Morgan Stanley believes that MNTN has the potential for growth, particularly in its adtech segment. The firm highlighted the company's technological innovation and its ability to attract new customers. However, it also noted that the company's growth will depend on its ability to maintain its gross profit margins and improve its EPS performance.
In conclusion, Morgan Stanley's decision to maintain its Equal-Weight rating for MNTN, Inc. reflects a cautious but optimistic view of the company's future prospects. The increased price target indicates that the investment bank believes that the company has the potential for growth, but also recognizes the risks associated with its current valuation. Investors should closely monitor MNTN's earnings reports and other developments to assess the company's performance and make informed investment decisions.
References:
[1] https://za.investing.com/news/analyst-ratings/morgan-stanley-downgrades-semrush-stock-rating-on-growth-concerns-93CH-3821169
[2] https://seekingalpha.com/news/4479323-mntn-inc-non-gaap-eps-of--065-misses-by-068-revenue-of-678m-beats-by-326m
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