Taboola.com (TBLA – Research Report), the Communication Services sector company, was revisited by a Wall Street analyst today. Analyst Laura Martin from Needham maintained a Buy rating on the stock and has a $4.00 price target.
Laura Martin’s rating is based on a combination of factors that highlight both the strengths and challenges faced by Taboola.com. Despite a slowing growth forecast for FY25, Taboola.com reported strong financial results for 4Q24, including a significant increase in net revenue and adjusted EBITDA, which exceeded expectations. The company’s ability to expand its margins and generate substantial free cash flow also contributed positively to the rating.
Furthermore, Taboola.com has demonstrated a commitment to returning value to shareholders through an increased buyback program. However, the company’s guidance for FY25 indicates modest growth, and there are concerns about demand and the impact of the Yahoo deal on shareholder value. Despite these challenges, the overall financial health and strategic initiatives of Taboola.com support the Buy rating given by Laura Martin.
In another report released yesterday, TD Cowen also reiterated a Buy rating on the stock with a $4.00 price target.