15 Best Advertising Stocks to Buy According to Hedge Funds

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11) Townsquare Media, Inc. (NYSE:TSQ)

Number of Hedge Fund Holders: 7

Townsquare Media, Inc. (NYSE:TSQ) operates as a digital media and marketing solutions company for small and medium-sized businesses. Townsquare Media, Inc. (NYSE:TSQ) expects Q4 2024 growth to be at least as strong as Q3 2024, despite an expected decline in national broadcast advertising. On the other hand, digital advertising grew by 5% YoY and programmatic advertising by 10% YoY in Q3 2024. Townsquare Media, Inc. (NYSE:TSQ) continues to prepare itself for debt refinancing in early 2025, which should bring favorable interest rate shifts.

The company has partnered with SummitMedia to white-label digital programmatic advertising solutions, which is expected to ramp up in 2025.  The collaboration is expected to leverage Townsquare Media, Inc. (NYSE:TSQ)’s expertise to enhance SummitMedia’s digital offerings throughout its 9 US markets. Townsquare’s Ignite division will share its in-house digital advertising solutions with SummitMedia. While no material revenue contribution from the collaboration was seen in Q3, Townsquare Media, Inc. (NYSE:TSQ) expects a slight contribution of a few hundred thousand dollars in Q4 2024. On the other hand, costs are mainly personnel-related.

Market experts believe that SummitMedia will establish a new digital arm, Summit Interactive, integrating Townsquare Media, Inc. (NYSE:TSQ)’s proprietary programmatic advertising technologies and data-driven insights. Barrington Research reissued an “Outperform” rating and set a price target of $17.00 on 7th November.

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