Positive Outlook for Taboola.com: Strong Financial Performance and Strategic Initiatives Justify Buy Rating

TD Cowen analyst John Blackledge reiterated a Buy rating on Taboola.com (TBLA – Research Report) yesterday and set a price target of $4.00.

John Blackledge has given his Buy rating due to a combination of factors including Taboola.com’s financial performance and strategic initiatives. The company’s first-quarter gross revenue exceeded expectations by approximately 2%, with EBITDA significantly surpassing projections due to improved cost management. Additionally, the management’s guidance for the second quarter aligns with estimates, and they have reaffirmed their fiscal year 2025 guidance despite some macroeconomic uncertainties.
Moreover, the early success of the Realize Platform, launched in the first quarter, is promising for capturing additional performance advertising dollars. The slight increase in gross profit and strong EBITDA growth further support the positive outlook. These elements, combined with the management’s confidence in their growth initiatives, underpin Blackledge’s Buy rating and the $4 price target for Taboola.com.

In another report released on May 6, Needham also maintained a Buy rating on the stock with a $3.34 price target.