As previously reported, Craig-Hallum analyst Jason Kreyer downgraded Cardlytics to Hold from Buy with a price target of $4, down from $12. The company announced CEO Karim Temsamani has stepped down, and it will promote COO Amit Gupta. The firm says the news blindsided it as much as the Q3 guide, which reflects a meaningful downward revision as issues that arose this spring have intensified. These fundamental headwinds will have a sharp impact on profits, pushing Cardlytics back into negative CF, Craig-Hallum notes. The firm is stepping back aside as it believes efforts to remedy campaign performance will take time.
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