B.Riley FBR analyst Eric Wold maintained a Buy rating on Gaia Inc (NASDAQ: GAIA) today and set a price target of $23. The company’s shares closed yesterday at $15.95.
Wold wrote:
“After the close on Monday, 5/7, Gaia (GAIA) reported 1Q18 results that came in ahead of our and consensus expectations for both total net revenues and EBITDA with the key focus metric of quarter-end subscribers exceeding our above-consensus estimate and growing at an impressive 70% Y/Y rate. Although management noted that subscriber additions are running at a pace ahead of what is necessary to reach the 1M target by the end of 2019, the company plans on accelerating spend in the near term to build a platform that can attract more high-value subscribers (that could come with a lifetime value double that of yogis). Therefore, while we are lowering our 2018/2019 EBITDA estimates on this higher spend, we remain positive on underlying trends and the expectation that subscriber acquisition cost efficiency should become increasingly visible beginning in 2019. We are reiterating our Buy rating and unchanged $23 PT.”
According to TipRanks.com, Wold is a 4-star analyst with an average return of 7.5% and a 54.5% success rate. Wold covers the Services sector, focusing on stocks such as Cinemark Holdings Inc, National Cinemedia, and AMC Entertainment.
Currently, the analyst consensus on Gaia Inc is Moderate Buy and the average price target is $22, representing a 37.9% upside.
In a report issued on April 27, Roth Capital also initiated coverage with a Buy rating on the stock with a $21 price target.
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Based on Gaia Inc’s latest earnings release for the quarter ending December 31, the company reported a quarterly GAAP net loss of $5.58 million. In comparison, last year the company had a GAAP net loss of $6.18 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.
