Benzinga | Jul 2, 2021 10:37AM EDT

Craig-Hallum Endorses Magnite's $31M SpringServe, Reiterates Rating, Price

* Craig-Hallum analyst Jason Kreyer hailed Magnite Inc's (NASDAQ:MGNI) acquisition of video ad server SpringServe for $31 million.

* He reiterates a Buy rating and $50 price target on the stock.

* The acquisition "could be nearly as consequential for the company as the Telaria and SpotX deals" despite the "negligible" financial obligation and contribution, Kreyer stated.

* Kreyer's talks with industry experts suggest "a very welcomed alternative" for an alternative ad server, housed in a fully integrated ad stack, from an independent provider in an ad server market dominated by Alphabet Inc's (NASDAQ:GOOG) (NASDAQ:GOOGL) Google and Comcast Corp (NASDAQ:CMCSA) Freewheel.

* Kreyer expects the acquisition to help Magnite capture incremental wallet share for its publishers.

* Price action: MGNI shares traded lower by 3.06% at $33.62 in the market session on the last check Friday.