Needham analyst Kyle Peterson has maintained their neutral stance on CDLX stock, giving a Hold rating today.
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Kyle Peterson has given his Hold rating due to a combination of factors surrounding Cardlytics’ recent strategic move and its financial position. He views the divestiture of the Bridg identity and shopper intelligence business to PAR as a constructive step, particularly because Bridg had underperformed in terms of growth and the transaction helps Cardlytics bolster its liquidity by receiving more liquid assets in the form of PAR stock. Despite recognizing that the sale locks in a substantial loss versus the original acquisition price in 2021, he believes it is prudent for the company to exit this asset and refocus on its core operations.
At the same time, Peterson is not yet comfortable recommending the stock as a buy because he still sees Cardlytics’ balance sheet and overall liquidity as fragile. His view is that the company must first demonstrate a more durable capital structure and improved financial flexibility before it can reliably pivot back to a growth trajectory. Given these unresolved balance sheet risks, he prefers to stay neutral and wait for clearer signs of balance sheet strengthening and sustainable progress before turning more constructive on the shares, which underpins his Hold rating.