DMS - Digital Media Solutions: Expected To Benefit From Growth In Digital Advertising
- DMS is benefitting from the current shift in advertising from traditional to online. We believe DMS will have significant growth opportunities as the underpenetrated total addressable market continues to grow.
- The platform’s “Flywheel Effect” is underestimated by the market and has a retention rate of 100% for its top 20 advertiser clients. For these customers, revenue grew 31% YoY.
- DMS has been “dynamically diversified” in the recent quarter which allows the Company to be more flexible, adjust to market environments, expand into new verticals, grow within verticals, and grow.
- DMS is undervalued and has significant upside. Our target price is based on a P/S multiple of 0.57 times blended with our DCF model price.
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Digital Media Solutions: Expected To Benefit From Growth In Digital Advertising