Laura Martin, an analyst from Needham, maintained the Buy rating on Outbrain (OB – Research Report). The associated price target remains the same with $9.00.
Laura Martin’s rating is based on Outbrain’s strategic acquisition of Teads, which is expected to significantly enhance the company’s financial performance. The acquisition is projected to more than double Outbrain’s revenues and triple its EBITDA by the fiscal year 2025, with EBITDA margins improving from 15% in 2024 to 30% in 2025.
Additionally, the company’s recent financial results show positive trends, with a notable increase in adjusted EBITDA and a strong margin improvement in the last quarter as a standalone entity. The forward guidance for the first quarter of 2025 and the full year indicates substantial growth in revenues and EBITDA, reinforcing the potential for enhanced profitability. These factors collectively underpin Laura Martin’s Buy rating for Outbrain.
In another report released yesterday, JMP Securities also maintained a Buy rating on the stock with a $10.00 price target.