Newsmax Inc. (NYSE: NMAX) shares may offer significant upside after the company reported stronger-than-expected first-quarter results, according to Channelchek equity research from Noble Capital Markets. Analysts maintained an “Outperform” rating and set a $17 price target, compared to a recent share price of $6.92.
Analysts Michael Kupinski, director of research and equity research analyst covering digital, media and technology, and research associate Jacob Mutchler noted that Newsmax delivered $51.7 million in first-quarter revenue and an adjusted EBITDA loss of $354,000. This performance outperformed their forecasted loss of $3.1 million, driven in part by lower-than-expected professional fees and marketing expenses.
The report highlighted affiliate fee revenue growth of 75.15% year over year as a key long-term earnings driver. Favorable multichannel video programming distributor renewal negotiations and expanding monetization opportunities could materially improve free cash flow over time, according to the analysts.
Channelchek also pointed to Newsmax’s diversified distribution model spanning cable, streaming, digital publishing, social media and international licensing. The company reaches more than 100 countries and approximately 50 million Americans across platforms.
Newsmax Inc. is listed on the NYSE (NMAX) and operates, through Newsmax Broadcasting LLC, one of the nation’s leading news outlets, the Newsmax channel. The fourth highest-rated network is carried on all major cable stations, as well as a major satellite system. Newsmax’s media properties reach more than 40 million Americans regularly through Newsmax TV, the Newsmax App, its popular website Newsmax.com, and publications such as Newsmax Magazine. Through its social media accounts, Newsmax reaches 20 million combined followers. Reuters Institute says Newsmax is one of the top U.S. news brands and Forbes has called Newsmax “a news powerhouse.”
For more information about the company, please visit https://ir.newsmax.com/overview/default.aspx. To view the full report, visit https://ibn.fm/hFCZe.
