Roth Capital Thinks Gaia Inc’s Stock is Going to Recover

Roth Capital analyst Darren Aftahi maintained a Buy rating on Gaia Inc (GAIAResearch Report) today and set a price target of $11.25. The company’s shares opened today at $6.79, close to its 52-week low of $6.54.

Aftahi noted:

“We expect in-line 2Q results when GAIA reports AMC on 8/5. While we anticipate subscriber growth and thus revenue to slow on the margin, we remain comfortable with the 20%+ sub. growth rate and reduced costs that should aid GAIA’s path to incremental adj. EBITDA improvements (~$0.8M q/ q improvement expected on ~$0.6M in incremental revenue). However, we believe cash burn likely remains high, and thus a focus for investors. Shares most likely reflect most risks at ~$7. PT to $11.25. Expecting further progress towards profitability and steady sub growth in 2Q19 results, but cash burn likely overshadows (for now). We look for 2Q19 sales/adj. $13.1M/($2.8M)/($0.32), in-line with consensus estimates of $13.2M/($2.7M)/($0.33). We look for streaming revenue growth of ~31% y/y, implying subscriber growth of ~24% y/y.”

According to TipRanks.com, Aftahi is a 5-star analyst with an average return of 15.1% and a 52.3% success rate. Aftahi covers the Technology sector, focusing on stocks such as Digital Turbine Inc, The Meet Group Inc, and Mitek Systems Inc.

The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Gaia Inc with a $16.63 average price target.

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The company has a one-year high of $22.10 and a one-year low of $6.54. Currently, Gaia Inc has an average volume of 101.9K.

Based on the recent corporate insider activity of 11 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of GAIA in relation to earlier this year.

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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.