Freedom initiates coverage of MNTN with a “Buy” rating and a $16.50 target price

The shift of viewers and advertising budgets from traditional television to streaming video services is creating growth opportunities for MNTN (MNTN), according to Freedom Broker analysts Saken Ismailov and Yegor Tolmachev. They initiated coverage of the company with a “Buy” rating and a $16.50 per share target price. This is about 75% above the $9.41 price used in the November 3 report.

MNTN operates a platform that allows small and mid-sized businesses to place ads on internet-connected TVs on a self-serve basis. The service combines audience targeting, inventory buying, and performance measurement: advertisers can track whether a campaign led to website visits and purchases. Automation makes TV advertising easier for companies that previously promoted products primarily through search engines and social networks.

New advertisers are expanding the client base

According to data cited in Freedom’s report, over the 12 months through June 30, 2026, the platform was used by 4,225 advertisers—up 39.9% year over year. About 95% of clients had not previously advertised on connected TV. Therefore, MNTN can grow by attracting companies new to this channel, rather than only winning clients away from competitors.

Additional support comes from the expansion of the market itself. According to estimates used by the analysts, spending on connected TV advertising in the U.S. could increase from $31.5 billion in 2025 to $60.9 billion by 2030. This corresponds to an average annual growth rate of about 14%.

Another source of growth is higher budgets from existing clients. If campaigns deliver the desired ROI, advertisers may run ads more often, promote new products, and expand audience reach.

Automation should support profitability

MNTN is developing tools that reduce the time required to prepare and launch ads. A simplified version of the platform, MNTN Express, is designed for small companies, while QuickFrame AI enables the creation and editing of advertising videos using artificial intelligence.

In Freedom’s investment scenario, these solutions help attract clients and increase their spending on the platform. At the same time, business growth does not require proportional expansion of headcount and other operating costs.

Analysts forecast MNTN’s revenue to grow by 21.5% in 2026 to $352.5 million. In 2027 it may reach $415.9 million, and in 2028—$478.3 million. Adjusted EBITDA margin, which reflects earnings before interest, taxes, depreciation, amortization, and a number of adjustments, is expected by Freedom to rise from 23.4% in 2025 to about 37% by 2030. This is close to management’s long-term target of 35–40%.

What risks Freedom considers

Key risks include intense competition, pressure on advertising service pricing, and a possible slowdown in client acquisition. Almost all advertisers have no obligations to maintain a certain level of spending, so they can cut budgets quickly.

Tightening rules on the use of personal data could also reduce the accuracy of audience targeting and ad performance measurement. If it becomes harder for clients to measure campaign ROI, this could limit the growth of their spending.

The $16.50 target price is calculated as the average of two valuations: discounted future cash flows and a comparison with peer companies. Freedom believes that the expected business expansion and higher profitability justify the “Buy” rating.

How MNTN went public

Previously, Freedom Broker reported on MNTN’s stock market debut. In May 2025, the company and its shareholders sold 11.7 million shares at $16, raising a total of $187.2 million. At the start of the first trading session, the stock rose to $21. Now analysts’ attention is focused on MNTN’s ability to turn an expanding client base into sustainable profit growth.

Not an individual investment recommendation.