illumin Holdings Inc T.ILLM

TD Initiate Coverage

[retiredcf]

AcuityAds Holdings Inc.

(AT-T) C$30.50

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).

[campst]

Good stuff. Very nice risk/reward for anyone buying at current prices! GLTA

[retiredcf]

The lemmings were jumping off the clfif first thing this morning.  At one point, TTD was down $100 but it's now down $69.  AT is down about 3% more than TTD but volume in a lot of these cases is relatively modest. GLTA

[campst]

And some people took advantage of the bargains. lol.

[BeatsBast]

Great news after yet another gut checking moment ! Hopefully we get guidance next week and this moment will be hindsight

[campst]

gut check? I found it amusing. ;-)

[growthnprosper]

Good time to buy today. We will have results early next week and hopefully news of Nasdaq listing. All good!

[campst]

No kidding! sombody(ies) scored shares at $25 today. lol.

[campst]

Congrats to whomever bought those $25! 20%+ return in two days. Not bad.....

[BeatsBast]

Where did you find this information? Will they make it public somehow?

[GoLongTerm]

@retiredcf please share where we can find this article.  Thanks and GLTA

[CHECKMATE77]

You need an account AcuityAds Holdings Inc. (AT-T) C$30.50 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

[BeatsBast]

https://we.tl/t-om2Olzfzw6 It so happens I opened an account with TD last week to have extended hours. :) Here is a link to the PDF report. Cheers