On March 27, 2024, Atrium Research analyst Nicholas Cortellucci published a report on QYOU Media (QYOUF:OTCMKTS;QYOU:TSXV), discussing the company's recent updates in its Connected TVs (CTVs) business and its outlook for 2024.
QYOU Media announced the launch of two new CTV channels, QToonz and RDC Movies, and a distribution agreement with ZEASN.
Cortellucci reported, "QYOU Media India now has seven free ad-supported channels on CTVs which drive revenue growth based on leveraging deep advertiser relationships with global brands."
Record Quarter for QYOU USA
In his report, Cortellucci highlighted that "QYOU USA is currently having its best quarter in company history as it bounces back from the Hollywood strike."
The influencer marketing business is gaining traction with major brands, positioning QYOU for rapid growth in 2024 and beyond, Cortellucci pointed out.
Upcoming Catalysts
Cortellucci shared some upcoming catalysts for QYOU. More financial results will be coming out next quarter. The company is also currently growing its news channels and partnerships.
There may also be increased growth from QYOU's gaming business, Cortellucci stated.
Valuation
The report concluded that QYOU Media is well-positioned for a record 2024, driven by the growth in its influencer marketing business and the increasing adoption of Connected TVs in India.
Cortellucci wrote that he would be maintaining a BUY rating on QYOU Media with a target price of CA$0.15 per share.
Cortellucci noted, "QYOU currently trades at 0.6x/0.5x 2024E/2025E sales compared to its peers at 1.0x/0.9x." The analyst expects the stock to re-rate once the company reaches profitability, which is anticipated in Q4/24."
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Disclosures for Atrium Research, QYOU Media, March 27, 2024
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