Canaccord Genuity lowers target price on Mirriad Advertising
Analysts at Canaccord Genuity lowered their target price on advertising software firm Mirriad Advertising from 58.0p to 44.0p on Thursday, citing a slower ramp-up than initially expected.
Canaccord said some of Mirriad's US ad clients, particularly in the consumer space, had begun to embrace the platform and were running repeat campaigns.
"This has multiplied US sales in the first half, which we expect to further scale up in 2H," said the analysts.
However, Canaccord noted that balancing this was slow demand from European TV broadcasters, which seem to be "more conservative" about embracing new advertising formats in the early stages of the post-Covid recovery.
"We have reduced 2021E and 2022E sales estimates (£6.0m to £3.1m and £11.0m to £8.0m respectively) which leads to higher forecast adj. EBITDA losses in 2021E (-£9.0m to -£12.0m) and 2022 (-£5.0m to -£10.0m)," said the Canadian bank, which reiterated its 'speculative buy' rating on the stock.