B. Riley analyst Daniel Day last night initiated coverage of Digital Turbine with a Buy rating and $29 price target. Digital Turbine is a leading mobile app growth and monetization platform offering a suite of products to assist app publishers and developers in user acquisition and monetization, Day tells investors in a research note. The analyst says that with the shares down 80% from the 2021 highs, investors have “unfairly bucketed APPS into a group of high-growth story stocks lacking near-term free cash flow generation.” He models 27% annual revenue growth over the next five years, with EBITDA and free cash flow projected to grow even faster due to operating leverage. Digital Turbine is an “ideal name for investors looking for high-quality, mispriced stocks that have been unfairly punished amidst the fog of the recent tech drawdown,” writes Day.
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