What happened

Shares of advertising-technology company Magnite (NASDAQ:MGNI) were gaining again on Monday after the company received an upgrade from a prominent analyst. As of 1 p.m. EST, Magnite stock was up 11%. Inclusive of today's gains, the stock is up about 40% in the last week and up over 300% in the last three months.

So what

Needham analyst Laura Martin has reportedly raised Magnite's target price. Previously, Magnite was given an $18 per share price target. But according to The Fly, Martin significantly raised this today to $30 per share, implying about 30% upside from where Magnite stock was trading before the market opened this morning.

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Martin's target price aligns with that of Susquehanna. Last week, Magnite stock skyrocketed as the firm covered Magnite for the first time. It initiated coverage by saying the stock could go up more than 50% to $30 per share, which is a big deal. Many investors are likely hearing about Magnite for the first time from Needham and Susquehanna. 

Now what

Magnite currently trades at around $25.60 per share, so its $30 price target has about 17% further upside. But don't think that's all the upside left for Magnite. Analysts incessantly upgrade and downgrade stocks and investors should take it with a grain of salt. For example, it was only November when Needham gave Magnite a price target of $18 per share. In a mere month, the firm somehow became 67% more bullish.

I can't predict how analysts will view Magnite stock next week or next month. But I can predict more analysts will be following Magnite now than before. That's because this was a small-cap stock, which are under the radar for much of Wall Street. But with the stock's incredible gains in 2020, it's now reached mid-cap status and is therefore getting big enough to draw more attention from analysts.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.