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CIBC Confirms Outperformer Rating and Target of $20 on Stingray Group Ahead of Q4 Results

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CIBC Capital Markets maintained its outperformer rating and $20.00 price target on the shares of Stingray Group (RAY.TO) ahead of the company reporting its fiscal fourth-quarter financial results.

The bank noted that fiscal Q4 will be the first full quarter of TuneIn contribution and it expects progress toward the company's synergies targets to be topical. The bank will also be looking for commentary on the fiscal 2027 outlook.

"We expect advertising spending was slower amid macro uncertainty in the quarter and we have slightly lowered our FQ4 estimates," said analyst Stephanie Price. "We continue to expect free ad-supported streaming TV (FAST) to be an organic growth driver and see upside if Stingray can execute on its TuneIn synergies more quickly than expected."

CIBC expects fiscal Q4 revenue growth of 47% year-over-year and an adjusted EBITDA margin of 32.0%, down 450 basis points year-over-year, primarily due to the TuneIn integration. It also expects flattish organic growth to be driven by advertising revenues and offset by declines in subscription revenues and radio as Stingray laps a tougher year-over-year comparison.

Price: $14.56, Change: $+0.46, Percent Change: +3.26%

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