Needham maintains Stagwell at Buy, raises price target to $12 from $10

Stagwell Inc. (STGW) reported Q3 revenue of $816M (+10% YoY) and net revenue of $664M (+8% YoY), with record adjusted EBITDA, margin, and EPS. Digital Transformation and Marketing Cloud segments drove growth, while Middle East turmoil caused a $9M headwind. The company raised its 2027 enterprise tech bookings target to $150M and repurchased 260K shares.

Stagwell (STGW) reported Q3 2026 organic growth of 11% and net revenue growth of 7%, driven by Digital Transformation (23%) and Marketing Cloud (108%). Adjusted EBITDA grew 25% to $145M, and adjusted EPS increased 42% to $0.34. The company secured a $1.5B federal contract and raised full-year guidance for adjusted EBITDA ($490M-$540M) and adjusted EPS ($1.07-$1.21).

B. Riley Securities kept its Buy rating on Stagwell and increased its price target to $12 from $10, suggesting a 20.6% upside from the Oct 29 close of $9.95, according to the firm.

Stagwell (STGW) shares rose 13% after reporting Q3 revenue of $816M, up 10%, and raised FY guidance. Adjusted EPS grew 42% to $0.34. Digital Transformation and The Marketing Cloud drove growth, while Marketing Services shrank. STGW trades at a single-digit forward P/E. Competitors WPP and Omnicom reported lower growth.

Stagwell Inc (STGW) reported record Q3 2026 results, with CEO Mark Penn highlighting strong tech bookings and increased profit margins from its Marketing Cloud. The company expects continued growth in digital transformation, driven by AI and partnerships with companies like Palantir and ServiceNow. Penn also discussed cost savings from AI implementation and the company's media strategy, including the Freestar acquisition.

Stagwell reported Q3 2026 net revenue of $664M, up 8% YoY, with EBITDA growing 25% to $145M. The company secured a $1.5B five-year deal with CACI and raised full-year net revenue growth guidance to 8-12%. Its stock rose 9.85% post-earnings.