In a report released yesterday, Tom Forte from Maxim Group reiterated a Buy rating on Rumble (RUM – Research Report), with a price target of $20.00.
Tom Forte has given his Buy rating due to a combination of factors that highlight Rumble’s strong financial performance and strategic positioning. The company reported impressive fourth-quarter results, surpassing expectations in both revenue and adjusted EBITDA, driven by robust monthly active users and effective monetization strategies. Rumble’s financial health is underscored by a solid cash position and no debt, further bolstered by a substantial investment from Tether, which provides the necessary capital to support its growth initiatives.
Additionally, Rumble’s guidance for the first quarter of 2025 indicates a commitment to narrowing adjusted EBITDA losses and achieving breakeven by 2025. The company’s unique position in the market, with a growing user base and a strategic partnership with Tether, enhances its ability to monetize its audience and build an independent cloud and video ecosystem. Despite trading at a higher EV/sales multiple compared to the sector, the potential for significant growth and the credibility of its platform support the reiterated Buy rating and the $20 price target.
Forte covers the Consumer Cyclical sector, focusing on stocks such as Beyond Inc, Light & Wonder, and Amazon. According to TipRanks, Forte has an average return of 8.8% and a 45.95% success rate on recommended stocks.