Cardlytics downgraded to Hold from Buy at Needham

Needham analyst Kyle Peterson downgraded Cardlytics to Hold from Buy without a price target. The company’s Q2 results missed expectations across the board, as weak billings resulted in another light quarter, the analyst tells investors in a research note. The firm finds it “more troubling” that this was the second quarter in a row Cardlytics faced challenges with higher consumer incentives weighing on revenue. It expects the challenges to remain until Cardlytics can re-negotiate contracts with partners and/or increase the usage of engagement-based pricing. The CEO change adds “more uncertainty to an already precarious situation,” Needham contends.