New Stock alert*** DSP // Viant
GBA welcomes Viant to the family! -> initiated with a Buy at Craig-Hallum 08:39 DSP, TTD Craig-Hallum analyst Jason Kreyer initiated coverage of Viant (DSP) with a Buy rating and $7 price target. The analyst notes that Viant has delivered three straight quarters of ad spend growth over 25%, effectively in-line with The Trade Desk (TTD). However, GAAP reporting requirements and complexities around gross/net reporting resulted in top-line growth of just 3% and -1% in the first half of 2022. Kreyer believes total ad spend is a better barometer for market share and anticipates the disparity between these two will converge somewhere in the middle. This is where "market perception is incorrect," in his view, as growth is poised to reaccelerate in early 2023. The analyst believes shares of Viant are trading with a de minimis enterprise value due to the low GAAP growth rates, but fail to account for the impending reacceleration.
