BofA upgrades DoubleVerify to Neutral with growth expectations likely bottomed

As previously reported, BofA analyst Omar Dessouky upgraded DoubleVerify (DV) to Neutral from Underperform with a price target of $17, down from $19. In Q4, one of DoubleVerify’s largest customers “dramatically reduced” its spending as part of sweeping cost reductions and a post-election rebound in ad spend did not materialize, the analyst tells investors. The results continue to demonstrate the need for more conservative guidance, but the firm sees limited downside to the shares given the combination of conservative guidance, forthcoming product cycles, and a duopoly position in the ad verification market with peer Integral Ad Science (IAS), the analyst added.