Needham analyst Laura Martin maintained a Buy rating on Stagwell (STGW – Research Report) today and set a price target of $9.00.
Laura Martin’s rating is based on Stagwell’s recent strategic initiatives and financial projections. The company has outlined ambitious five-year financial targets, aiming for $5 billion in revenue and $1 billion in adjusted EBITDA by 2029. This implies a compound annual growth rate of 12% in revenue and 20% EBITDA margins, driven by a mix of organic growth and mergers and acquisitions, alongside increased productivity from AI and a shift towards digital revenue streams.
Additionally, the conversion of super-voting C shares into public A shares by key stakeholders is expected to enhance the company’s eligibility for inclusion in more stock indices. Furthermore, Stagwell’s significant increase in new business wins, with a reported $382 million in net new business for 2024, reflects its growing market presence and competitive edge. These factors collectively support Laura Martin’s Buy rating for Stagwell’s stock.
In another report released yesterday, Wells Fargo also reiterated a Buy rating on the stock with a $9.00 price target.