Cineverse upgraded to Buy at Benchmark after ‘ transformational deal’

As previously reported, Benchmark upgraded Cineverse (CNVS) to Buy from Speculative Buy with a price target of $12, up from $9. After the acquisition of IndiCue, an advertising technology company, Cineverse has “gone from lumpy, unpredictable revenue to a business model that is largely recurring/reoccurring and that solves a growing need in the evolving media landscape,” the analyst tells investors. The firm’s 20-times EBITDA multiple reflects both the shift to software and “an attempt to capture just how conservative we believe numbers will end up being,” the analyst added.