Stingray Group wins price target raise at RBC

Its second quarter results are in the books and RBC analyst Drew McReynolds is a little more bullish on Stingray Group (Stingray Group Stock Quote, Chart, News, Analysts, Financials TSX:RAY.A).

On November 5, RAY reported its Q2, 2025 results. The company posted Adjusted EBITDA of $34.0-million on revenue of $93.6-million, a topline that was up 13.4%, year-over-year.

“Stingray’s FAST channel and retail media segments continued to drive growth in the second quarter of fiscal 2025, raising advertising revenues by 66% year-over-year,” said CEO Eric Boyko. “A pilot project with Vizio on the FAST channel side, combined with increased penetration with other TV manufacturers, largely contributed to the significant revenue growth. We also benefited from digital equipment installations at new accounts across our North American advertising platform to bolster revenues. On the retail media front, key customer wins at Sobeys, Shoppers Drug Mart and Mondou within our Canadian network should deliver meaningful revenue contributions in the second half of the fiscal year and beyond.”

As reported by the Globe and Mail, McReynolds Thursday maintained his “Outperform” rating on RAY, but raised his price target from $10.00 to $11.00.

“Against the backdrop of an evolving global music and video landscape, we believe management continues to execute on identifying and capitalizing on new revenue growth opportunities that include retail media, SVOD, FAST channels, and connected cars,” he wrote. “While macro uncertainty could increasingly weigh on advertising and be a renewed headwind for radio, we believe these opportunities have enhanced the company’s revenue visibility and provide attractive growth runways through the medium term. We expect these revenue growth opportunities combined with mid-30-per-cent adjusted EBITDA margins and 60-per-cent EBITDA-to-FCF conversion to translate to steady NAV growth, and we therefore see further upside in the shares from current levels.”