Stagwell Inc. (STGW) is a Buy at Needham Amid Deals with Tech Giants

Stagwell Inc. (NASDAQ:STGW) is a must-buy penny stock to buy now. On November 4, Needham analyst Laura Martin reiterated a Buy rating on Stagwell Inc. (NASDAQ:STGW) and lifted the price target from $6.36 to $7.25, impressed by the strategic partnership the company has inked with technology companies.

According to the analyst, deals with OpenAI, Google, Apple, and Amazon underscore the role the company is playing in enhancing the marketing efforts of these tech giants. The analyst expects new product launches and consumer-facing advertisements to drive product adoption and monetization. The remarks come as Stagwell delivers strong third-quarter results with double-digit growth in non-advocacy work and strong organic growth in almost all areas.

Revenue in the quarter increased 4% year over year to $743 million, as net income attributable to shareholders rose to $25 million, compared to $3 million in the same quarter last year. Consequently, earnings per share attributable to common shareholders tripled to $0.09 compared to $0.03 per share as of the third quarter of last year.

Mark Penn, chairman and CEO of Stagwell, said, “With double-digit growth in non-advocacy work, strong organic growth in nearly all areas, enhanced cash flow and increased non-advocacy margin, this quarter again demonstrates how Stagwell is a winner in an industry undergoing significant transformation. Our newly announced partnership with Palantir is yet another example of how Stagwell is a leader in the application of AI for marketing.”

Stagwell Inc. (NASDAQ:STGW) is a global marketing and communication services company that provides digital-first solutions for brands. It operates through segments, including the Integrated Agencies Network, Brand Performance Network, and Communications Network, offering services that combine creativity with technology to drive business results for its clients.

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Disclosure: None. This article is originally published at Insider Monkey.