Allen Klee, an analyst from Maxim Group, reiterated the Buy rating on Dolphin Entertainment (DLPN – Research Report). The associated price target remains the same with $6.00.
Allen Klee’s rating is based on a comprehensive evaluation of Dolphin Entertainment’s recent financial performance and future growth prospects. In the first quarter of 2024, Dolphin Entertainment exceeded expectations with a 54% year-over-year increase in revenue, reaching $15.2M and surpassing the estimated $9.4M. This surge in revenue, along with an adjusted EBITDA of $1.0M—contrasting with the anticipated loss of ($1.2M)—demonstrates the company’s robust financial health and operational efficiency. Klee also notes the company’s successful campaigns, such as those for Oscar season, and the expansion in social influencing sectors, highlighting the company’s diverse business initiatives and their cross-selling opportunities.
Additionally, Klee identifies several upcoming catalysts that suggest a positive trajectory for Dolphin Entertainment, including film and product launches, as well as plans for owned and co-owned live events. The anticipation of a new documentary movie in partnership with IMAX, the launch of Rachael Ray’s Staple Gin, and the expansion into new verticals such as skin care and young adults are expected to be significant drivers of growth. Moreover, Klee believes Dolphin Entertainment has sufficient capital to fund its organic growth, and he sees the potential for the company to establish recurring revenue streams through its diverse ventures. The favorable valuation of the company, with an EV/EBITDA multiple of 3.0x Klee’s 2025 adjusted EBITDA estimate and a $6.00 price target based on a 10.0x multiple, underpins the Buy rating and reflects confidence in the company’s future performance.
Klee covers the Technology sector, focusing on stocks such as Mitek Systems, Interlink Electronics, and Paltalk. According to TipRanks, Klee has an average return of -19.4% and a 26.61% success rate on recommended stocks.
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Dolphin Entertainment (DLPN) Company Description:
Dolphin Entertainment, Inc. is an independent entertainment marketing and premium content development company, which engages in the provision of marketing and publicity services to major film studios, and many of the independent and digital content providers. It operates through the following segments: Entertainment Publicity & Marketing and Content Production. The Entertainment Publicity & Marketing segment includes 42West and provides clients with diversified services, including public relations, entertainment content marketing and strategic marketing consulting. The Content Production segment comprises of Dolphin Entertainment, Dolphin Films, and Dolphin Digital Studios and specializes in the production and distribution of digital content and feature films. The company was founded on March 7, 1995 and is headquartered in Coral Gables, FL.
