B.Riley FBR analyst Eric Wold reiterated a Buy rating on Gaia Inc (NASDAQ: GAIA) today and set a price target of $26. The company’s shares closed yesterday at $16.45.
Wold wrote:
“We believe it is unlikely that GAIA’s total subscription-acquisition costs will experience a material increase in 3Q from the levels just seen in 1Q and 2Q. Using GAIA’s reported results for 1Q and 2Q, with subscriber-acquisition costs equating to 109% and 85% of revenues, this would equal average cost per net-paid-subscriber-added of $185 and $198, respectively. However, if we assume that the ratio increases to 95%–105% in 3Q, this would indicate that average cost per net-paid-subscriber in 3Q would move to as much as $229–$253. With the growing influence of organic subscriber growth on overall trends (eclipsing a 40% contribution during 2Q), we continue to believe GAIA has the potential to remain at relatively efficient subscriber-acquisition spending levels in the coming quarters, and likely even more so as the subscriber base grows and the organic influence strengthens even further.”
According to TipRanks.com, Wold is a 5-star analyst with an average return of 11.4% and a 63.2% success rate. Wold covers the Services sector, focusing on stocks such as Reading International Inc, National Cinemedia, and AMC Entertainment.
The word on The Street in general, suggests a Strong Buy analyst consensus rating for Gaia Inc with a $26.33 average price target.
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Based on Gaia Inc’s latest earnings release for the quarter ending June 30, the company reported a quarterly GAAP net loss of $6.35 million. In comparison, last year the company had a GAAP net loss of $6.31 million.
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Gaia, Inc. operates a global digital video streaming subscription service and online community. It provides its services through the following channels: Seeking Truth, Transformation, and Yoga. The company was founded by Jirka Rysavy on July 7, 1988 and is headquartered in Louisville, CO.
