Needham analyst Laura Martin maintained a Buy rating on Stagwell today and set a price target of $6.36.
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Laura Martin’s rating is based on Stagwell’s impressive financial performance and strategic business wins. The company reported strong second-quarter results, with net revenues of $598.1 million, reflecting an 8% year-over-year increase and surpassing expectations by 1%. Additionally, the adjusted EBITDA rose by 8% year-over-year, exceeding estimates by 2%, and the adjusted EPS increased by 10% year-over-year, aligning with projections.
Stagwell’s consistent ability to secure new business is another factor contributing to the Buy rating. The company achieved $117 million in net new business wins during the second quarter, marking the fifth consecutive quarter of surpassing $100 million in new business. Notable clients such as Samsung, Google, and New Balance contributed to this success, with spending from major tech clients increasing by 11% year-over-year. Furthermore, Stagwell is on track to grow its total net new business wins by 15%-20% in the fiscal year 2025, excluding potential growth from government business, which could serve as an additional growth driver.
In another report released today, Craig-Hallum also maintained a Buy rating on the stock with a $0.00 price target.
Based on the recent corporate insider activity of 45 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of STGW in relation to earlier this year.