Bank of America started off coverage on System1 Inc. ( NYSE: SST ) with a Buy rating on its view the stock is a diversified name in a growth industry.
The firm is constructive on the long-term opportunity for programmatic advertising as it waits to observe the success of the subscription business specifically. Analyst Nat Schindler and team identify specific positives for SST that include the lack of the company's reliance on cookies, the opportunity in the subscription business, and SST's proven a proven track record of being able to achieve profitability.
BofA assigned a price objective of $12 to SST based on a 1.3X 2023 EV/net revenue multiple, which is noted to be a slight discount compared to peers. The PT reps more than 40% for the stock.
Shares of SST traded flat on Tuesday at $8.44.
Of note, the Seeking Alpha Quant Rating on System1 ( SST ) slipped to Hold from Buy on July 11.
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System1 lands buy rating from Bank of America in first ratings look