11:34 AM EDT, 05/24/2024 (MT Newswires) -- Magnite's ( MGNI ) recent partnership deal with streaming giant Netflix ( NFLX ) shows it's "increasingly" seen as the go-to advertising technology partner for both buy- and sell-side stakeholders, BofA Securities said Friday.

Netflix ( NFLX ) recently said it selected Magnite ( MGNI ) as a key partner for its global programmatic ad business.

BofA projects roughly $15 million revenue contribution in 2025 from the partnership, assuming a gradual ramp to $30 million revenue run rate by the end of next year, which the brokerage said was consistent with the company's expectation for Netflix ( NFLX ) to become its largest CTV client by the end of 2025.

BofA has "increased confidence" that Magnite ( MGNI ) will become the leading supply-side tech solution in CTV ad, as the industry shifts to more automated ad execution, BofA analyst Omar Dessouky said in a note.

"[Magnite's ( MGNI )] differentiated product offering, combining both an ad server and an SSP, serves as a central nexus for publishers' programmatic pipes irrespective of the buying route, making it much harder to disintermediate than standalone SSPs," Dessouky said.

Recent read-throughs from Walt Disney ( DIS ) and Paramount Global ( PARAA ) indicate programmatic transition is "well underway" among premium streaming services, which likely is supportive of a "multiyear share gainer story" for Magnite ( MGNI ), the analyst said.

BofA upgraded its rating on the Magnite ( MGNI ) stock to buy from neutral and raised its price objective to $15 from $13.

The company's shares were up 11% in recent trading.

Price: 12.53, Change: +1.46, Percent Change: +13.19