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Author Message   Chiru_fan Pilla Bewarse Username: Chiru_fan Post Number: 628 Registered: 04-2017 Rating: N/A Votes: 0 Posted on Monday, March 01, 2021 - 4:15 pm:    TD BANK quote on AcuityAds: "We believe that its recently launched (October 2020) illumin platform has industry-leading capabilities in the programmatic advertising sector, which should lead to either significant organic revenue growth for several years, or a takeover by a larger media or technology company looking to buy vs. build similar customer- friendly ad buying capabilities... Big Revenue Growth Expected..." A win-win.... we either grow organically [=lots of money for years to come] OR it goes up much more and then gets bought out at a premium [= lots of money in short term]. Either way, we win as shareholders if you buy and hold this stock. ======================================================================== TD BANK Report BUY Recommendation Bright Future in a Growing Market Event: We are initiating coverage of AcuityAds (AT-T) with a BUY rating and $37.00 target price. AcuityAds operates a programmatic marketing platform powered by proprietary artificial intelligence (AI) and machine learning technology. The platform operates in the AdTech industry, and enables programmatic advertising. See our full initiation of coverage report that will be published later today. TD Investment Conclusion With valuations of 26x 2021E gross profit (this is comparable to a P/Sales multiple for most comps, and we will call this a net revenue multiple for AT) and 83x EV/ EBITDA, this is clearly not an inexpensive stock, and it is also arguably a small player in a big space that is ultimately dominated by Google, Facebook, and Amazon. However, we believe that its recently launched (October 2020) illumin platform has industry-leading capabilities in the programmatic advertising sector, which should lead to either significant organic revenue growth for several years, or a takeover by a larger media or technology company looking to buy vs. build similar customer- friendly ad buying capabilities. Valuation Remains Reasonable vs. Peers: Looking back to February 2020 (before the pandemic), we struggle to understand why AT shares traded at only 1.4x 2020E net revenue when the main independent comp in the AdTech space, The Trade Desk (TTD), was valued at 14.7x 2020E revenue. We believe that AT is still attractively valued vs. peers. TTD is now valued at 35x 2021E revenue (Exhibit 4 shows AdTech and SaaS comps), which is still a 36% premium to AT. Big Revenue Growth Expected...: Partly fuelled by easy comps (pandemic driven) and structural tailwinds, we expect strong revenue growth of 24% in 2021. Then, as illumin gains more awareness among marketers, and as a larger percentage of advertising budgets shift to programmatic buys via demand side platforms (DSPs), especially via connected TVs or CTV (Exhibit 1), we project a revenue CAGR of 19% for Acuity over the 2022-2023 timeframe (annual forecast highlights are in Exhibit 2).