stagwell is a stock that shouldnt be overlooked as digital marketing gains favor goldman sachs said analyst brett feldman initiated coverage of the stock at a buy his 12 price target implies an anticipated upside of 624 from fridays close shares jumped more than 9 in early trading monday stagwell which focuses on creative and digital marketing is up about 19 this year stgw 1d mountain stagwell stock stagwell is expected to benefit from longterm growth in digital advertising and marketing spend globally feldman said digital advertising spending is expected to grow faster than total spending in the space through the end of 2026 specifically we expect stgw will continue to benefit from secular tailwinds to digital advertising spend he said the company has a higher share of digital revenue compared with traditional ad agencies at around 60 versus 30 feldman also said the company has low market share and faster organic revenue growth than traditional peers these three stats also make feldman optimistic on stagwells longterm growth outlook additionally stagwell has a strong balance sheet with cash flow that allows for strategic options and financial flexibility he said after crunching the numbers feldman estimated the company could double the size of its asset portfolio through mergers and acquisition using just cash on hand if going another direction the company could return its whole market cap to shareholders through dividends or buybacks over the next five years using the same sum the company also has an attractive valuation with the potential for multiple expansion over time feldman said the 12 price target is based on a multiple that could end up being conservative he said as theres potential to grow more if it can win larger contracts and keep an aboveaverage growth profile feldmans buy rating puts him out of step on wall street with the majority of analysts having hold ratings on the stock according to refinitiv cnbcs michael bloom contributed to this report