What happened

Shares of Magnite (NASDAQ:MGNI) are rising today, up about 10% as of 12:30 p.m. EDT. The move higher likely reflects a rebound following a sharp sell-off of the ad tech company's stock in recent weeks that may have left shares oversold.

Magnite became the world's largest programmatic advertising company on the sell-side of the ad-tech market (the opposite side as The Trade Desk) after a merger of CTV-focused Telaria and scaled programmatic player Rubicon Project earlier this year.

So what

Magnite's stock has been hammered this year as concerns about the impact of the coronavirus on digital advertising spooked investors. Shares even slumped following the company's second-quarter earnings report in early August, which featured better-than-expected top- and bottom-line results and guidance from management for revenue to likely stop declining in Q3. One key highlight in the update was management's note that CTV revenue had accelerated from 12% year-over-year growth in Q2 to 50% growth during the beginning of Q3.

Rising green stock chart superimposed over map of the world

Image source: Getty Images.

Analysts have been particularly bullish on the stock, with Truist analyst Matthew Thornton boosting his 12-month price target from $7 to $9 on Aug. 13 and Needham initiating coverage with a $10 12-month price target on Sept. 3. Yahoo! Finance shows the average price target coming in at $10.75, translating into a consensus forecast of nearly 70% upside.

Some investors may see the stock's recent sell-off as a good buying opportunity, particularly given the bullish analyst sentiment.

Now what

Investors will look to Magnite's current-quarter results to see if revenue has recovered and whether the company is making progress on integrating the Telaria and Rubicon Project platforms into a more cohesive product. Magnite is expected to report its third-quarter results in early November.