On Monday, Roth/MKM initiated coverage on PodcastOne, a leading US podcast network. The firm assigned a Buy rating to the NASDAQ-listed company, with a price target set at $4.50. PodcastOne, known by its ticker NASDAQ:PODC, is notable for being the only pure-play podcast stock in the US market and is majority-owned by LiveOne.
The analyst from Roth/MKM expressed optimism about the company's financial prospects, forecasting revenues to reach $42.6 million in fiscal year 2024. This figure is expected to grow annually by approximately 23% to 25% over the coming years. The firm also anticipates that PodcastOne's adjusted EBITDA, which is projected to be modestly positive in fiscal year 2024, will increase to around $6 million by fiscal year 2027.
The Buy rating reflects the analyst's confidence in the stock's potential performance. The price target of $4.50 suggests that there is significant room for growth, with an implied enterprise value (EV) to revenue multiple of 1.5 times the firm's calendar 2025 revenue estimate.
PodcastOne's positioning as a top-ten podcast network in the United States and its association with LiveOne contribute to the positive outlook.
Investors should pay close attention to Roth/MKM's new Buy rating and price target for PodcastOne, which highlight the immense potential and bright future for this company in the booming podcast industry.
The analyst's bullish rating and target illustrate the significant upside for PodcastOne and underline the stock as an attractive investment opportunity. Given Roth/MKM's respected position and insightful analysis, their positive coverage provides robust validation of PodcastOne's impressive value proposition and substantial growth prospects moving forward.
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