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DA Davidson Initiates Coverage on Rumble SPAC with Buy Rating and $15 Price Target

Published 09/08/2022, 05:14 PM
Updated 09/08/2022, 05:20 PM
© Reuters. DA Davidson Initiates Coverage on Rumble SPAC (CFVI) With Buy Rating and $12 Price Target

By Davit Kirakosyan

A DA Davidson analyst initiated coverage on right-leaning online video platform Rumble with a Buy rating and $15 price target after the close of trading Thursday.

Note that Rumble, a free-to-use video sharing site whose mission is to support content creators with its purportedly neutral platform, entered into an agreement with Cantor Fitzgerald’s SPAC, CF Acquisition Corp VI (NASDAQ:CFVI), in December 2021 and expects to de-SPAC in September 2022.

The analyst forecasts Rumble to grow its revenue at a 119.1% CAGR between 2021 and 2024.

Among the catalysts for the company’s shares over the next 12 months, the analyst mentioned (1) The launch of its ad platform and expansion of its cloud-computing services; (2) Rumble’s differentiated strategy potentially to result in a greater-than-expected number of content creators joining its platform, which could have a positive impact on engagement and monetization; (3) The company’s plans to expand its platform internationally, beyond its current footprint (Australia, Canada, France, Italy, and the U.K.)

Latest comments

A LOT of excitement brewing around Rumble. More and more big names taking notice (a few mentions on Joe Rogan), and rumored big names to come over to the platform, presumably after merger. what sets Rumble apart from other media companies is their stance on Free-speech, and anti-censorship. Not just fundamental value here, but sentimental. These are the niche sort of companies that can QUICKLY gain value with retail investors. More and more marketshare being taken from Google, and soon AWS and Azure.  (I wont be surprised to see $30-$50 after merger within a month). More bullish articles are starting to surface now. (and 95% of Rumble's post merger dilution will be under 1 year lockup period, with an ad revenue valuation that is 2-4x higher then the de-spac marketcap)
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