RJ Hamster
Analysts Bullish on Newsmax After Strong Q3, Target Shares…
| Analysts Bullish on Newsmax After Strong Q3, Target Shares at $20-$22Newsmax’s strong third-quarter performance continues to draw praise from Wall Street, with investment analysts Michael Kupinski of Noble Capital Markets and Tom Forte of Maxim Group reiterating bullish ratings on the media company.They also see significant upside for investors who buy shares in the growing digital and broadcasting company.Following the release of Newsmax’s (NYSE: NMAX) third-quarter results showing robust growth in key revenue segments — particularly broadcasting and affiliate fees — analysts say the company’s fundamentals, expanding distribution footprint, and growing audiences position Newsmax for sustained long-term gains.Solid Third-Quarter PerformanceBoth analysts noted that Newsmax bucked the trend — seeing rising revenues despite the fact that the year after a presidential election, media companies often see falling engagement and advertising revenues.A key sector, broadcasting revenues, surged 10.1% to $36.6 million, driven by improved advertising pricing, higher ratings, and rising Newsmax+ subscriptions.Affiliate fees from the Newsmax cable channel climbed 22.3% to $8.1 million, reflecting both favorable new contracts and previously negotiated rate increases.Overall, Newsmax reported third-quarter revenue of $45.3 million, a 4% increase year over year.The company reaffirmed that it expects 2025 revenues to total $180 million to $190 million — up from $171 million last year.Newsmax ended the quarter with a robust $130.4 million in cash and short-term investments and no long-term debt, liquidity that analysts said gives the company meaningful room to pursue expansion without diluting shareholders.Kupinski: “Compelling Valuation, Long-Term Strength”In his latest research note, Noble Capital Markets’ Michael Kupinski described Newsmax’s third quarter as “solid” and reaffirmed its strong trajectory in affiliate revenue growth.Kupinski highlighted the network’s rising audience traction and expanding ratings as key drivers that strengthen Newsmax’s leverage in ongoing and upcoming distribution negotiations.”We believe the company’s growing reach supports higher per-sub rates during renewal cycles,” he wrote, noting that affiliate fees remain one of the most powerful long-term catalysts for shareholder value.Kupinski reiterated his Outperform rating and assigned a $22 price target, reflecting his long-term confidence in the company’s audience loyalty, free-cash-flow outlook, and affiliate repricing opportunities.Forte: “Difficult Comparisons, Strong Execution”Maxim Group’s Tom Forte also reaffirmed his bullish stance, keeping a Buy rating and a $20 price target.Forte emphasized that Newsmax’s third-quarter results exceeded expectations on both the top and bottom lines and that management’s reaffirmation of 2025 revenue guidance of $180-$190 million signals confidence despite a tough macroeconomic backdrop and challenging post-election comparisons in the second half of the year.He noted that affiliate fees accounted for 17.8% of total revenue, up from 15.1% a year earlier — another favorable signal of the network’s improving negotiating position relative to competitors.Forte added that Newsmax trades at a premium to some peers but argued the valuation is justified given the company’s traction in distribution deals, subscriber growth, and expanding content strategy.After the release of third-quarter results, Newsmax CEO Chris Ruddy said, “We are pleased to announce another strong quarter that shows the power and consistency of our business, even in a nonelection year when news audiences and advertising demand across the industry typically soften.””Our performance this quarter reflects the strength of our diversified revenue model, the growing reach of our cable and FAST channels, and the continued engagement of audiences across all of our platforms.”Ruddy continued, “Since going public, we have focused on building a company positioned for sustainable, long-term growth. Our strong balance sheet and access to the public markets give us the flexibility to invest strategically, expand our distribution, and continue delivering compelling content that resonates with viewers.”See Newsmax Share InformationForward-Looking Statements This communication contains forward-looking statements. From time to time, we or our representatives may make forward-looking statements orally or in writing. We base these forward-looking statements on our expectations and projections about future events, which we derive from the information currently available to us. Forward-looking statements can be identified by those that are not historical in nature. The forward-looking statements discussed in this communication and other statements made from time to time by us or our representatives, may not occur, and actual events and results may differ materially and are subject to risks, uncertainties and assumptions about us. 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Factors that may cause actual results to differ materially from current expectations include various factors, including but not limited changes in domestic and global general economic and macro-economic conditions and the volatility of the price of Common Stock that may result from, among other things, comments by securities analysts or other third parties, including blogs, articles, message boards and social and other media, large shareholders exiting their position in our Common Stock, any negative public perception of us, sales of shares previously registered for resale, or other uncertainties and the factors set forth in the sections entitled “Risk Factors” in Newsmax’s Annual Report on Form 10-K for the twelve months ended December 31, 2024, Newsmax’s Quarterly Report on Form 10-Q for the three months ended June 30, 2025, and other filings Newsmax makes with the Securities and Exchange Commission. 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