Cautious Outlook on DoubleVerify Holdings Amid Growth Uncertainties and Sector Valuation Trends

Omar Dessouky, an analyst from Bank of America Securities, maintained the Hold rating on DoubleVerify Holdings (DV – Research Report). The associated price target was lowered to $16.00.

Omar Dessouky has given his Hold rating due to a combination of factors influencing DoubleVerify Holdings’ current and future performance. Despite a significant first-quarter revenue growth of 17% year-over-year, which surpassed expectations, Dessouky remains cautious about the sustainability of this growth in the long term. The company’s Activation segment showed impressive growth, and new clients scaled faster than anticipated, yet the overall social measurement growth was underwhelming, and a major customer’s cutback had a negative impact.
Furthermore, while DoubleVerify was once considered a high-growth stock, its conservative guidance for the upcoming quarters suggests a slower growth trajectory. The company’s fastest-growing platforms, such as CTV and Retail Media, are still in their early stages, and there is no standout product driving growth for 2025. Given these uncertainties and the macroeconomic risks, Dessouky maintains a neutral stance, awaiting further evidence of growth potential before revising the rating. The price objective was slightly lowered to reflect the broader adtech sector’s valuation trends, indicating a cautious outlook for the near term.