Liftoff Mobile (LFTO) has built a position in areas of mobile user acquisition that are not well served by the largest platforms, including marketers outside gaming and games that rely on in-app purchases rather than advertising revenue, Wedbush Securities said Tuesday in a report initiating coverage of the stock with an outperform rating.
Liftoff partly credited World Cup demand across prediction markets, sports betting and live-scoring apps for its Q2 revenue beat, and the slowdown in the Q3 revenue growth forecast to 21% to 24% from 35% largely reflects the comparison with a World Cup quarter, the report said.
Wedbush expects Q3 revenue of $220.3 million. It modeled $304 million of free cash flow in 2027 and $534 million in 2028, reducing net debt to about $116 million from $1.13 billion by 2028.
The lock-up expiration on Nov. 30 is a key event for the stock over the next six months, with majority shareholders Blackstone (BX) and General Atlantic expected to gradually reduce their holdings through marketed offerings, the report said.
Wedbush has a $25 price target on Liftoff stock. Q3 results are due Nov. 12.
Price: 17.17, Change: +0.41, Percent Change: +2.48
Comments