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The Arena Group undefined, parent company of TheStreet and publisher of Sports Illustrated, was given a buy rating by Lake Street Capital as the firm reinitiated coverage Monday.

In a note to clients and investors, analysts Mark Argento and Jacob Stephan said that the Minneapolis-based private equity firm had reinitiated coverage of The Arena Group with a buy rating and price target of $1.50.

Shares of the Arena Group, formerly known as Maven, closed flat at $.60 Monday, and are up 7.14% in the past week.

Naming The Arena Group's work around branded content and new leadership of chairman and CEO Ross Levinsohn, the analysts pointed toward the potential of the platform with significant sports and finance verticals to bring in significant viewership.

"With aggregate traffic of over 120M monthly unique visitors, The Arena Group has valuable brands and platforms with monetization potential," they wrote. New initiatives in its lifestyle, commerce, NFT, and Metaverse coverage are also expected to bring in monetization opportunities."

A week ago, The Arena Group reported that its third-quarter revenue rose by more than 80% to $59.6 million, year-over-year. The company said its advertising revenue increase was primarily due to additional revenue of roughly $6.8 million, generated as a result of a doubling of advertising sponsorships.

"Our progress has been significant. We are just getting started," Levinsohn said on a call following the release of the quarterly report.

The Lake Street analysts further said that positive cash flow in the third quarter was an "important milestone" for the company.

"With its SEC filings up to date and a national stock market listing in its future, we believe The Arena Group won’t be under the radar much longer," Argento and Stephan wrote. "While it took a year longer than anticipated, we believe Arena is in a much better place strategically and fundamentally, and it will likely have been worth the wait."