Analyst Mark Zgutowicz of Benchmark Co. reiterated a Buy rating on Criteo SA, reducing the price target to $42.00.
Claim 55% Off TipRanks
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Discover top-performing stock ideas and upgrade to a portfolio of market leaders with Smart Investor Picks
Mark Zgutowicz’s rating is based on several strategic developments and market dynamics surrounding Criteo SA. The company is expected to report second-quarter earnings that align with expectations, with potential for slight upside due to favorable foreign exchange conditions. Despite challenges in Retail Media growth due to client transitions, Criteo’s launch of Programmatic Display for Retail is anticipated to divert significant advertising dollars from major competitors like Amazon and Walmart, with early adoption by companies such as Costco and Albertsons.
Furthermore, Criteo’s shares are currently valued at a low EV/EBITDA multiple, which suggests that the market has already priced in potential weaknesses in Retail Media. However, the company’s expanding agency business and the potential for revenue synergies from retargeting and commerce audiences present growth opportunities. These factors, combined with the possibility of improved operating efficiencies and revenue accelerators, underpin Zgutowicz’s Buy rating, despite a reduction in the price target to $42.
In another report released today, Stifel Nicolaus also maintained a Buy rating on the stock with a $42.00 price target.