Strategic Spending Shift and Market Entry Potential Support Buy Rating for Ibotta, Inc. Class A

Bernie McTernan, an analyst from Needham, maintained the Buy rating on Ibotta, Inc. Class A (IBTA – Research Report). The associated price target was lowered to $60.00.

Bernie McTernan has given his Buy rating due to a combination of factors influencing Ibotta, Inc. Class A’s current and future performance. Despite the recent adjustment in price target to $60 following lower-than-expected quarterly results and guidance, McTernan sees potential in the company’s strategic shift in spending.
The management’s initiative to transition budgets towards more programmatic and continuous spending is already showing promise, as evidenced by two consumer packaged goods companies adopting this approach with multiple brands. This shift is resulting in significantly higher spending rates, which could lead to a faster market entry than initially anticipated. McTernan believes that if this strategy proves successful in the short term, it could provide an upside to the current forecasts, supporting the Buy rating for Ibotta, Inc. Class A’s stock.

According to TipRanks, McTernan is a 4-star analyst with an average return of 4.8% and a 50.00% success rate. McTernan covers the Consumer Cyclical sector, focusing on stocks such as DraftKings, Super Group (SGHC), and Rush Street Interactive.

In another report released today, Wells Fargo also maintained a Buy rating on the stock with a $52.00 price target.