Analyst Maria Ripps from Canaccord Genuity maintained a Hold rating on Fluent and keeping the price target at $3.00.
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Maria Ripps’s rating is based on a combination of factors that reflect both challenges and opportunities for Fluent. The company reported a significant decline in its Q2 consolidated revenue, which was approximately 24% lower year-over-year and fell short of expectations by about 10%. This decline was primarily driven by difficulties in the Owned & Operated segment, which saw a substantial drop in revenue due to challenges in acquiring media from biddable channels. However, there was a positive development in the Commerce Media segment, which experienced a remarkable 121% year-over-year growth, indicating successful expansion in retailer partnerships and post-transaction offerings.
Despite the promising growth in Commerce Media, the Owned & Operated segment still constitutes a significant portion of Fluent’s business and continues to face challenges. This mixed performance leads to a cautious outlook, as the company is still working towards achieving sustained consolidated revenue growth. While the valuation suggests potential for rapid improvement with even modest enhancements in fundamentals, the current uncertainties warrant a Hold rating as the situation is monitored for signs of consistent growth in the future.
Ripps covers the Communication Services sector, focusing on stocks such as MediaAlpha, Meta Platforms, and Fluent. According to TipRanks, Ripps has an average return of 22.0% and a 51.55% success rate on recommended stocks.
In another report released today, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $2.00 price target.