Stagwell initiated with a Buy at Seaport Research

Seaport Research analyst David Joyce initiated coverage of Stagwell (STGW) with a Buy rating and $10 price target The firm thinks revenue can grow 10%-11% annually through 2030 and adjusted EBITDA at a 13% compound annual growth rate, the analyst tells investors. Financials have some cyclical exposure to political ad spending seasons, but the company’s growth with marketing and digital transformation clients is “feeding a virtuous cycle of more new business wins,” given it increasing scale, the analyst added.