Why Magnite Stock Dropped Today
Shares of Magnite (NASDAQ: MGNI) dropped by as much as 16% today after getting a downgrade from Wall Street. As of 2:40 p.m. EST, shares had somewhat recovered and were only down 9%.
Truist Securities downgraded its rating on Magnite shares from buy to hold, while analyst Matthew Thornton adjusted his price target from $12 to $37 to accommodate for the recent rally. The jump has put Magnite's valuation into ambitious territory and altered the risk/reward profile. Current levels properly value the company's prospects, and the possibility of slowing growth in the second half of 2021 could create some risks, in Thornton's view.
Image source: Getty Images.
Source Fool.com
