B.Riley FBR Reiterates Their Buy Rating on Gaia Inc (GAIA)

By Jason Carr

B.Riley FBR analyst Eric Wold reiterated a Buy rating on Gaia Inc (GAIAResearch Report) today and set a price target of $20. The company’s shares closed yesterday at $5.90, close to its 52-week low of $5.68.

Wold observed:

“After the close on Monday (8/5), Gaia (GAIA) reported 2Q19 results that exceeded our and consensus expectations for EBITDA with a meaningful reduction in spend from the prior quarter. With a continued move towards more efficient customer acquisition spend and higher lifetime value subscribers, management reaffirmed GAIA remains on-track to achieve sustainable positive EBITDA by the end of September—with an added goal of turning cash flow positive by July 2020 (all with the current balance sheet). While we can understand some level of ongoing investor skepticism given continued quarterly losses, we continue to believe additional confidence in a path toward achieving this guidance should drive a meaningful improvement in GAIA’s valuation. We are reiterating our Buy rating with a reduced PT of $20 (down from $22).”

According to TipRanks.com, Wold is currently ranked with no stars on a 0-5 star ranking scale, with an average return of -7.7% and a 33.7% success rate. Wold covers the Services sector, focusing on stocks such as Reading International Inc, Cinemark Holdings Inc, and National Cinemedia.

Gaia Inc has an analyst consensus of Moderate Buy, with a price target consensus of $16.63, representing a 181.9% upside. In a report issued on July 23, Roth Capital also maintained a Buy rating on the stock with a $11.25 price target.

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Based on Gaia Inc’s latest earnings release for the quarter ending March 31, the company reported a quarterly GAAP net loss of $6.73 million. In comparison, last year the company had a GAAP net loss of $6.35 million.

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.