Analysts at Liberum Capital have initiated coverage of LADbible owner LBG Media PLC (AIM:LBG) with a 'buy' rating and 115p price target in a 45-page note entitled 'Monetising millennials'.
The analysts noted that LBG Media is a diversified online youth publisher that has 168 mln followers, of which around 66% fall in the 18-34 year old demographic.
They said: "This highly attractive, hard-to-reach demographic enables LBG to attract global advertisers. LBG has a significant opportunity in the US to grow its direct business.
"Similarly, there is upside risk to forecasts from monetising non-FB social media platforms. We forecast a 10% adj. EBITDA CAGR. This growth is attractive relative to the 8.8x CY23 P/E."
With LBG Media shares currently trading at 64p, the Liberum analysts pointed out that there is around 100% upside to their target price.