Needham analyst Joshua Reilly maintained a Buy rating on TechTarget, Inc. today and set a price target of $15.00.
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Joshua Reilly has given his Buy rating due to a combination of factors including TechTarget, Inc.’s recent financial performance and future prospects. The company reported second-quarter results that exceeded revenue expectations, although EBITDA was slightly below due to lower gross margins. Despite this, the reaffirmation of the full-year 2025 guidance for revenue and EBITDA suggests stability and potential growth.
Reilly is optimistic about the company’s future free cash flow (FCF) conversion, which is expected to improve significantly in 2026 after the one-time merger costs in 2025. The anticipated EBITDA of $95 million in 2026, with a 50% conversion to FCF, indicates a promising 10% FCF yield at the current share price. Additionally, management’s success in improving quarter-over-quarter revenue and the expected progress in the latter half of 2025 further supports the Buy rating.