In a report released today, Omar Dessouky from Bank of America Securities reiterated a Hold rating on DoubleVerify Holdings (DV – Research Report), with a price target of $16.00.
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Omar Dessouky’s rating is based on a combination of factors, including DoubleVerify Holdings’ recent performance and future prospects. The company has shown stronger-than-expected results in its Activation segment, which has led to an increase in its Q2 revenue growth and EBITDA margin projections. This improvement is attributed to successful upselling to large enterprise clients and positive reception to new offerings like social activation and Rockerbox.
Despite these positive developments, Dessouky maintains a Hold rating due to uncertainties in forecasting the business’s long-term growth. While DoubleVerify has introduced promising new products such as Authentic AdVantage, which aims to address industry attribution issues, the need for financial proof points remains. Additionally, without a clear strategy to increase penetration in its Measurement segment, Dessouky finds it challenging to project a significant reacceleration in growth to previous levels.
Dessouky covers the Communication Services sector, focusing on stocks such as Magnite, Take-Two, and Roblox. According to TipRanks, Dessouky has an average return of 33.9% and a 61.39% success rate on recommended stocks.
In another report released yesterday, Morgan Stanley also maintained a Hold rating on the stock with a $17.00 price target.