Cardlytics: Strong Q1 Performance Overshadowed by Future Uncertainties with Bank of America

Needham analyst Kyle Peterson has maintained their neutral stance on CDLX stock, giving a Hold rating yesterday.

Kyle Peterson’s rating is based on Cardlytics’s recent financial performance and future uncertainties. The company reported strong first-quarter results, surpassing expectations in both revenue and earnings, which reflects successful new pipeline conversions and improved execution. However, despite these positive outcomes, there are concerns regarding the future relationship with Bank of America, as the current contract is set to expire in early 2026.
While Cardlytics remains hopeful about continuing its partnership with Bank of America, possibly under a different platform, this uncertainty creates a potential risk that weighs on the stock’s future performance. As a result, Kyle Peterson does not foresee any immediate positive catalysts that could drive the stock’s value higher, leading to the decision to maintain a Hold rating.

According to TipRanks, Peterson is a 3-star analyst with an average return of 2.7% and a 47.75% success rate. Peterson covers the Technology sector, focusing on stocks such as Alight, Fair Isaac, and Broadridge Financial Solutions.

In another report released yesterday, Craig-Hallum also maintained a Hold rating on the stock with a $2.00 price target.