Direct Digital price target lowered to $6 from $8 at Benchmark

Benchmark analyst Daniel Kurnos lowered the firm’s price target on Direct Digital (DRCT) to $6 from $8 and keeps a Buy rating on the shares. Q1 was “a decent beginning” with the overall headline about in line with expectations, with “maybe a touch more revenue and a little less EBITDA, although the latter was entirely due to mix,” the analyst tells investors in a post-earnings note. If management can both cut costs and return the business to growth, there should be some fairly immediate scale benefits, which is why the firm sees EBITDA returning to breakeven or better in 2025, the analyst added.