Stagwell Stock Could Outperform With 12% Growth, But Analyst Warns Of Market Skepticism Amid Macro Concerns
Rosenblatt analyst Barton Crockett reiterated the Buy rating on Stagwell Inc. (NASDAQ:STGW) on Thursday, with a price forecast of $10.
The analyst writes that Stagwell doesn’t need to experience double-digit growth or significant margin expansion to justify a higher valuation compared to its peers.
Even if it grows at a more modest mid-single-digit pace with stable margins, Stagwell should still command a strong EV/EBITDA multiple. However, the company is currently trading at 6.7x 2025E EBITDA, slightly below the peer average of 6.9x and the historical outperformer Publicis, which is valued at 7.3x.
Per Crockett, if Stagwell were able to meet its growth projections, the analyst suggests that its multiple could rise, supporting…
