Wang & Lee Group board approves 250-to-1 reverse share split
Monday saw a revision in Criteo S.A. (NASDAQ:CRTO) stock’s outlook by Benchmark, as analyst Mark Zgutowicz reduced the price target to $46.00, a decrease from the previous $55.00, while maintaining a Buy rating on the stock. The revision comes as Criteo’s shares have declined nearly 14% in the past week, now trading near their 52-week low. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value model.
The adjustment follows a series of challenges faced by Criteo, including the sudden transition of its largest client and the exit of Uber (NYSE:UBER) Eats US. These factors contribute to what Zgutowicz describes as a "significant optical reset" expected to impact the company through 2026. He notes that the first quarter witnessed reduced spending in retail department stores, fashion, and beauty sectors, a trend that seems to have persisted into the second quarter, indicating a volatile macro environment and an uncertain short-term trading range for Criteo’s shares. Despite these challenges, InvestingPro data shows the company maintains strong fundamentals with a perfect Piotroski Score of 9 and more cash than debt on its balance sheet.
Zgutowicz acknowledges the frustration among shareholders regarding the inconsistent progress in retail media (RM) monetization, despite the favorable secular backdrop. Criteo is perceived to be in a "pole Switzerland position" to capitalize on RM’s positive secular dynamics, yet the analyst points out that the company’s growth trajectory is likely to be measured.
Criteo’s strategic position in the market is recognized, with the expectation that the company will eventually monetize the robust secular trends in retail media. However, the current challenges suggest that this growth will be gradual, as Criteo navigates a shifting macroeconomic landscape and strives to build a more consistent revenue stream from its retail media business.
In other recent news, Criteo S.A. reported first-quarter results that exceeded analyst expectations, with adjusted earnings per share reaching $1.10, surpassing the consensus estimate of $0.78. The company’s revenue was $451 million, significantly higher than the anticipated $259.76 million. Despite these strong results, Criteo has adjusted its 2025 revenue growth expectations to a low single-digit percentage range, citing macroeconomic uncertainties and strategic shifts by key clients. Notably, two major retail media clients are planning to reduce their partnerships, impacting Criteo’s future growth prospects. JPMorgan has responded by lowering its price target for Criteo to $27 from $39, maintaining a Neutral rating, while Susquehanna has also reduced its price target to $30 from $38. These adjustments reflect concerns over Criteo’s ability to navigate the evolving market landscape and client relationship changes. Criteo’s efforts to expand its Retail Media leadership and improve its platform continue, with investments in product innovation and partner integrations. The company ended the first quarter with $286 million in cash and cash equivalents, providing a strong financial foundation amidst ongoing challenges.
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