BuzzFeed (BZFD), mcap=$247m, price $1.87 vs $1.60

– Buzzfeed – is a digital media company focused on Gn Z and Millennials.
– Recent SPAC lost 80%+ of its value, mainly due to unrealistic expectations set at the time of de-SPAC and management has lost its credibility.
– 2022 is likely to be an absolute through for BuzzFeed.
– ’23-’24 cyclical recovery is expected to come at high incremental margins.
– Strong enough balance sheet to withstand the current storm.
– Asymmetric bet due to limit further downside.

– Expected to re-rate from the current 0.6x to 2-3x sales by 2025, equivalent to $6-9/share.
– Precedent transactions in Digital Media occurred around 3x to 5x sales.

Exp. gain: 3-5x over the next 3 years.

Full $BZFD write-up (free guest account required):

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