Why BofA Loves This Digital Advertising Platform Company

Although AdTheorent Holding Company Inc ADTH is a smaller player in the competitive digital advertising space, there is long-term opportunity as its target addressable market is expected to grow more than 20% for the next several years, according to BofA Securities.

The AdTheorent Holding Analyst: Nat Schindler initiated coverage of AdTheorent Holding with a Buy rating and a price target of $10.

The AdTheorent Holding Thesis: The company’s digital advertisement platform does not rely on individual profiles or sensitive personal data for targeting, Schindler said in the initiation note.

“We believe AdTheorent’s privacy-centric approach to ad-targeting represents a significant strategic advantage and the company’s strategic moat will further grow in coming years as media buyers are increasingly preferring privacy-forward alternatives to legacy methods of ad-targeting,” the analyst wrote.

“Also, AdTheorent’s customized industry-specific solutions, which aid in delivering higher ROI compared to competitors, will help expedite revenue growth by increasing wallet share with customers,” Schindler mentioned. “AdTheorent is also well-positioned to capture market share in the high growth CTV ad-tech segment,” he added.

ADTH Price Action: Shares of AdTheorent Holding are down 0.31% to $6.40 at the time of publication Friday.

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