RBC Capital an “Outperform” Rating on Magnite, Inc. (MGNI)

Magnite, Inc. (NASDAQ:MGNI) is one of the 10 Best Russell 2000 Stocks to Invest In According to Hedge Funds.

On May 7, 2026, RBC Capital lowered its price target on Magnite, Inc. (NASDAQ:MGNI) to $20 from $23. The firm maintained an “Outperform” rating on the shares. It also stated that the price cut shows “multiple contraction” even though “solid Q1” revenue and adjusted EBITDA beat forecasts.

A day earlier, Magnite, Inc. (NASDAQ:MGNI) reported Q1 revenue of $164.4 million, growing by 6% YoY. It also reported a contribution ex-TAC of $160.9 million, a 10% jump that landed at the high end of guidance. CTV grew with the contribution from ex-TAC from the segment, jumping 30% to $82.3 million, now over half of the total.

RBC Capital an “Outperform” Rating on Magnite, Inc. (MGNI)

The company also reported a net income of $4.4 million compared to a $9.6 million loss a year before, and adjusted EBITDA bumped up 16% to $42.9 million.

CEO Michael G Barrett said the firm “exceeded total top and bottom line expectations” and noted CTV momentum and AI use across operations.

Magnite, Inc. (NASDAQ:MGNI) is a technology solution firm that automates the acquisition and selling of digital advertising inventory for buyers and sellers.

While we acknowledge the risk and potential of MGNI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than MGNI and that has 10,000% upside potential, check out our report about the cheapest AI stock.

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