Analyst Brian Pitz from BMO Capital maintained a Hold rating on Integral Ad Science and keeping the price target at $10.30.
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Brian Pitz has given his Hold rating due to a combination of factors including Integral Ad Science’s recent financial performance and strategic developments. The company reported a robust third quarter with revenue and adjusted EBITDA exceeding expectations, driven by strong growth in their Optimization and Publisher segments. However, this was slightly offset by a miss in Measurement Revenue. Despite the strong results, the absence of forward guidance due to the pending acquisition by Novacap introduces some uncertainty.
Additionally, while Integral Ad Science is expanding its partnerships and product offerings, such as the expansion of its Measurement partnership with Snap and the launch of Total Media Quality on Meta’s Threads, the market is still adjusting to these changes. The company’s net revenue retention has improved, indicating a healthy relationship with existing customers, yet the overall market environment and the upcoming acquisition suggest a cautious approach. Therefore, maintaining a Market Perform rating with a target price of $10.30 reflects a balanced view of potential opportunities and risks.
Pitz covers the Communication Services sector, focusing on stocks such as Alphabet Class A, Roblox, and Electronic Arts. According to TipRanks, Pitz has an average return of 18.5% and a 67.57% success rate on recommended stocks.