Barrington analyst Patrick Sholl has maintained their neutral stance on FLNT stock, giving a Hold rating yesterday.
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Patrick Sholl has given his Hold rating due to a combination of factors influencing Fluent’s current performance and future prospects. The company’s first quarter results showed a decline in revenue, with a 16% drop compared to the previous year, and a negative EBITDA impacted by softer media margins. Despite these challenges, Fluent is making progress in shifting its revenue basis towards Commerce Media Solutions, which has shown significant growth and potential for future revenue acceleration.
Fluent’s strategic repositioning towards Commerce Media is promising, as this segment has nearly doubled its revenue and is expected to continue growing. However, the partnership with new retail partners, while expanding the company’s reach, has resulted in lower revenue shares and modest margin impacts. Additionally, the company’s capital structure, with a focus on reducing debt and maintaining compliance with EBITDA covenants, indicates a cautious approach to financial management. These factors collectively support the Hold rating, as they suggest potential for growth but also highlight existing risks and uncertainties.
In another report released yesterday, Canaccord Genuity also maintained a Hold rating on the stock with a $3.00 price target.