Stingray Group is a takeout candidate, this investor says

LionGuard Capital Management CEO and CIO Andrey Omelchak told BNN Bloomberg’s Market Call on April 22 that Stingray Group  (Stingray Group Stock Quote, Chart, News, Analysts, Financials TSX:RAY.A) remains an underfollowed free-cash-flow story with growth across streaming media and digital advertising.

Omelchak described Stingray as a streaming media company built around audio and video content distributed through TV and connected TV, in-car entertainment and retail locations.

“If you go shopping and you hear the music, there’s a good chance it’s Stingray providing that music,” Omelchak said.

He said the company has delivered double-digit growth and margin expansion, while also making strategic acquisitions that he expects to accelerate organic growth. On the audio side, Omelchak pointed to redesigned partnerships with Tesla, BYD, Audi and Nissan, which he said should contribute more meaningfully to earnings in fiscal 2027 and beyond.

The fund manager said Stingray generates strong free cash flow, trades at a double-digit free cash flow yield and has high insider ownership, which aligns management with shareholders.

“I believe it’s a potential takeout candidate at this point,” Omelchak said.

Of the analysts covering the stock, six rate it “Buy,” with no “Hold” or “Sell” ratings, and the consensus price target is $20.67.

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