Alert Price: $3.98
Maxim Group Price Target: $10.00
Float: 4.88M
Technical Analysis
Company Website | Investor Presentation | Recent News
Earlier we told you that we had identified what we believed was a highly undervalued growth play in the tech sector.
The company is Kubient, Inc. (NASDAQ: KBNT), and we ask that you add it to the top of your watchlist immediately.
Kubient is a technology company with a mission to transform the digital advertising industry to audience-based marketing.
Digital transformation is driving unprecedented digital advertising growth.
In 2020, $384.9 Billion digital ad spend surpassed traditional advertising for the first time while growing to $517.5 Billion in 2023.
What is truly exciting about KBNT, is its patent pending KAI Ad Fraud Detection technology.
Digital ad fraud is a massive issue costing brands both large and small billions of dollars in waste per year.
KAI is the most advanced detection system for advertisers and publishers. With artificial intelligence pattern recognition and device scoring, that prevents even the most advanced bots and fraud before bidding on ads.
This is a true game changer in the sector.
KBNT is coming off a blockbuster Q3.
Revenue increased by +206%, and management guidance appeared to bullish.
KBNT is currently trading under its $5 IPO price, but recently received a $10 price target from Maxim Group.
Those looking for growth play with triple digit gain potential should immediately start their research, and add KBNT to the top of their watchlist.
About Kubient
Kubient is a technology company with a mission to transform the digital advertising industry to audience-based marketing. Kubient's next generation cloud-based infrastructure enables efficient marketplace liquidity for buyers and sellers of digital advertising. The Kubient Audience Cloud is a flexible open marketplace for advertisers and publishers to reach, monetize and connect their audiences. The Company's platform provides a transparent programmatic environment with proprietary artificial intelligence-powered pre-bid ad fraud prevention, and proprietary real-time bidding (RTB) marketplace automation for the digital out of home industry. The Audience Cloud is the solution for brands and publishers that demand transparency and the ability to reach audiences across all channels and ad formats. For additional information, please visit kubient.com/.
Investment Highlights
Leading ad-tech cloud-based marketplace
Proprietary Technology KAI ad-fraud prevention RTB digital out of home
Massive market with $384.9B in 2020 revenue
Proven management team and board of directors with deep industry experience
Potential M&A Activity
Over 570M internet devices analyzed, verified and data based
KBNT's KAI Addresses The $42 Billion Ad Fraud Problem
Digital ad fraud is a massive issue costing brands both large and small billions of dollars in waste per year. The overall purpose of KBNT's offerings is for achieving maximum advertising efficiency and optimizing the digital advertising marketplace.
KBNT's KAI Ad Fraud Prevention is the most advanced detection system for advertisers and publishers. With artificial intelligence pattern recognition and device scoring, that prevents even the most advanced bots and fraud before bidding on ads.
KBNT's Industry Disrupting Technology:
Addresses the $42 billion fraud problem
Reduced ad fraud by 32% for global marketing company
Has Zero increase in latency
How It Works
First-of-its kind, patent-pending, pre-bid ad fraud detection. Loads faster than competing products, stops fraud before a transaction occurs, helps advertisers maximize (ROAS) return on ad spend, and protects publishers
KAI's experience- based self- learning model is based on neural network architecture capable of learning and modeling nonlinear complex relationships. Enabling KAI to more accurately identify and get smarter with each prediction. Catching every little variation in the data and exposing all types of fraudulent inventory.
KAI is self learning, which means it is getting smarter and more accurate over time. This provides advertisers the most powerful tools capable of preventing the purchase of ad fraud.
When It Comes To Ad Fraud Protection, KBNT Blows The Competition Away. (Best In Breed)
"In an industry where speed is crucial, KAI is the fastest tool in a $42 billion ad fraud market. Thanks to the success of our initial beta tests in the first half of the year, we have received an increase in demand for KAI from a number of prospective customers. We also plan on rolling out KAI as a stand-alone application in the coming months, providing more optionality and expanding our potential customer base. In parallel, we are also looking to launch a self-serve DSP for a number of brands that have been requesting an alternative to the outdated mode of driving their campaigns through a third-party DSP or agency trading desk. With a number of major events on the horizon and a steadily recovering market, we look forward to driving continued growth and increasing share in the digital advertising industry." Kubient Founder, Chairman, CSO, and Interim CEO Paul Roberts.
Maxim Reiterates $10 Price Target (Upside Of +151%)
Jack Vander Aarde from Maxim Group reiterated a Buy rating on KBNT, with a price target of $10.00. The company’s shares closed last Friday at $3.98.
According to TipRanks.com, Aarde is a 5-star analyst with an average return of 32.2% and a 56.9% success rate.
The Best Is Yet To Come For KBNT
3Q20 Up 206% With Major Growth Forecast For 2021
3Q Beats on Accelerating Demand; Projected 3-Yr Revenue CAGR of 100%+ & 20%+ Profit Margins by 2022 – MAXIM Reiterates Buy - $10 PT
KBNT building out sales team to accelerate revenue growth
Kubient's real-time anti-fraud SaaS solution, called KAI, set to launch by year-end and will address the industry’s $40B+ fraud problem, which is expected to serve as a material revenue driver in 2021 and beyond
2021 could mark major growth inflection year with projections of 20%+ GAAP net income margins by 2022
The company does not expect to require additional capital in the foreseeable future which translates to NO DILUTION!
KBNT's Growth Strategy Paints A Bright Picture For The Future
Expanding salesforce to accelerate greater marketplace participation and secure new customers
Introducing stand-alone applications that address advertisers’ business needs, e.g. KAI for real time fraud prevention, first party data hosting, audience targeting solutions
Increasing footprint into global growth markets: Latin America, Asia-Pacific, EMEA
Launching and scaling reach with advertisers by introducing real-time auctions to the DOOH market
Continue to enhance and develop technology to improve adoption by publishers and advertisers
Acquiring companies that expand core tech, client base and footprint
Market Outlook
Digital advertising’s fraud problem is only growing as more money shifts online.
Whenever money is involved, there is always an opportunity for a fraud. From a technical perspective, online advertising fraud has been relatively easy (and yes – lucrative) business for fraudsters and a financial disaster for advertisers, publishers and online ad platforms themselves. Online ad business was built on a number of Internet Open Standard technologies which never meant to be fraud / scam / steal proof. As a consequence, ad fraudsters got a huge head start.
According to Juniper, in 2019 online advertising industry was facing a stunning $42 billion loss due to ad fraud and unfortunately there isn’t any reason to believe the figure will be less this year.
That $42 billion figure puts the money lost to fraud in digital advertising, a $333 billion industry, higher than money lost to credit card fraud, a $3.32 trillion industry. That’s in part because the digital ad industry doesn’t have as many safeguards and regulations around fraud as more established sectors.
Technical Analysis
We've done our very own chart analysis and see the potential for a big move from here
Bullish Indicators:
Bullish downtrend breakout.
Volume increasing.
Bullish cross above zero-line by momentum indicator.
RSI surges above mid-point.
MACD crossing zero-line.
Histogram ticking higher.
Major confluence of Fibonacci expansion and extension levels act as perfect targets for continuation.
The Bottom Line
With KBNT shares trading at close to $4, well capitalized from a recent IPO, strong sales reported, strong growth projected, industry disrupting technology, and a recent Research Report from Maxim Group recommending a BUY with a $10 price target, KBNT appears to be a prime candidate for higher prices in the near and long terms.
That being said, we ask that you read our full profile below, start your research, and add KBNT to the top of your watchlist. By Viewing this Content, you Agree that you Have Read and are in Full Understanding of both our Disclaimer & Privacy Policy(*Remember to use a Stop-Loss Order to protect your gains, as well as limit possible losses.)