Magnite (MGNI) is in a good position to benefit from the continued growth and maturation of the connected TV, or CTV, advertising market, RBC Capital Markets said in a note Wednesday, citing management comments during a recent non-deal roadshow.

In CTV, the company said advertising inventory continues to grow, particularly in live sports, which is just entering an inflection phase. The company already has access to most major CTV publishers and continues to benefit from the industry's shift toward programmatic advertising, the analysts said.

New sources of advertising demand may be the bigger growth catalyst going forward, management suggested. One area of opportunity is the small and medium-sized business market, which is becoming more accessible through simpler buying interfaces and GenAI video creatives, the analysts added.

Investors also asked about the possibility of Meta (META) becoming a buyer of CTV advertising inventory, according to the note. While the company did not comment specifically on Meta, it did note its "unique breadth of inventory," which could make it a logical partner for any new demand source, the analysts said.

RBC is maintaining its outperform rating and $20 price target on Magnite.

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