Morgan Stanley analyst Matthew Cost has maintained their neutral stance on DV stock, giving a Hold rating today.
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Matthew Cost has given his Hold rating due to a combination of factors including a mixed third-quarter performance and a cautious outlook for DoubleVerify Holdings. While the company reported an EBITDA that exceeded expectations, the revenue was slightly below estimates, and the forward guidance was not as strong as anticipated. The growth in certain segments like Social Activation and CTV was promising, but the overall sentiment was dampened by weaknesses in the retail sector and a reduction in the full-year revenue growth forecast.
Despite the company’s efforts in product innovation and customer adoption, the macroeconomic environment and pressures from large retailers have created uncertainties. Cost remains cautious about the company’s ability to achieve a higher valuation multiple without a significant change in its fundamental trajectory. The exposure to walled gardens offers potential upside, but the broader market conditions and concerns about the open-web ecosystem continue to weigh on investor sentiment.
Cost covers the Communication Services sector, focusing on stocks such as Electronic Arts, Roblox, and Zillow Group Class C. According to TipRanks, Cost has an average return of 7.6% and a 57.14% success rate on recommended stocks.