Digital content platform Maven (MVEN) received an out-of-the-gate buy rating on its stock from analysts at Lake Street Capital, who cited the company’s differentiated publishing model as reason to expect it to outperform other traditional digital providers.
In a research note to clients and investors, Lake Street analysts Mark Argento and John Godin initiated coverage on Maven shares with a buy rating and a one-year price target of $1.50.
The analysts pointed to Maven’s use of joint ventures and licensing arrangements in building a coalition of 310-and-counting publishers with aggregate traffic of more than 107 million unique monthly visitors as reason to expect strong growth and revenue.
“Using its shared digital publishing platform, Maven can manage online properties to drive viewership and, ultimately, advertising revenues,” the analysts said, noting that Maven “provides a solution to publishers who have limited choices to drive viewership” – namely, either Facebook (FB) - Get Report and Alphabet's (GOOGL) - Get Report Google.
"The technology underlying the online properties is proprietary, uniform, and scalable, giving publishers the best-of-breed solution without giving up content control," the analysts wrote.
The analysts also pointed to both TheStreet and highly influential sports publication Sports Illustrated as proof of the company’s ability to scale its digital platform even more.
"Given it went public in 2016 via a reverse merger and used private capital and debt funding to grow its business, Maven has been off the radar of many micro/small-cap growth stock investors," the analysts added. "We expect this will change as the company files its updated financials and looks towards a national market uplist as soon as this spring."
Maven operates online properties for the likes of A&E’s History and Biography brands, Ski Magazine, Maxim, and others. Maven also operates its wholly-owned or licensed brands, including TheStreet and Sports Illustrated.