Ibotta, Inc.’s Strategic Shift to CPID Model Fuels Buy Rating and Promises Future Growth

Bernie McTernan, an analyst from Needham, reiterated the Buy rating on Ibotta, Inc. Class A (IBTA – Research Report). The associated price target was raised to $70.00.

Bernie McTernan has given his Buy rating due to a combination of factors, primarily focusing on Ibotta, Inc.’s promising transition in advertising strategy. The company is shifting from traditional ROAS-based metrics to a more innovative approach centered on incremental purchases or CPID. This strategic shift has already shown positive results, as evidenced by two consumer packaged goods advertisers significantly increasing their spending on the platform.
Furthermore, the addition of three new clients to the testing phase suggests growing confidence in the CPID model. McTernan believes that while 2025 will be focused on refining these processes, it will position Ibotta, Inc. for substantial revenue growth in 2026 and beyond. The anticipated acceleration in revenue, coupled with the company’s high incremental margins, underpins the optimistic outlook and the Buy rating.

In another report released today, Citizens JMP also reiterated a Buy rating on the stock with a $58.00 price target.

Based on the recent corporate insider activity of 84 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of IBTA in relation to earlier this year.