Cautious Outlook for Ibotta, Inc. Amid Revenue Decline and Uncertain LiveLift Initiative

Bank of America Securities analyst Nitin Bansal reiterated a Sell rating on Ibotta, Inc. Class A today and set a price target of $22.00.

Nitin Bansal has given his Sell rating due to a combination of factors impacting Ibotta, Inc. Class A. The company’s third-quarter revenue and EBITDA slightly exceeded expectations, but the guidance for the fourth quarter fell short, indicating a potential decline in revenue. This is compounded by a decrease in third-party publisher, direct-to-consumer, and advertising revenues year-over-year.
The uncertain timeline for the ramp-up of the LiveLift initiative further contributes to the cautious outlook. Management’s plans to validate LiveLift’s ROI and the long sales cycle suggest that significant revenue contributions from this initiative may not materialize until late 2026. Additionally, the company’s reliance on discretionary budgets with limited durability and the experimental nature of its role in the CPG marketing mix add to the uncertainty. Consequently, Bansal has lowered revenue and EBITDA estimates for 2026 and 2027, resulting in a reduced price objective.