Benchmark lowers Criteo stock price target to $42 on retail media concerns

Published 22/07/2025, 14:54
Benchmark lowers Criteo stock price target to $42 on retail media concerns

Investing.com - Benchmark lowered its price target on Criteo S.A. (NASDAQ:CRTO) to $42.00 from $46.00 on Tuesday, while maintaining a Buy rating on the stock. The company, currently trading near its 52-week low of $23.03, appears undervalued according to InvestingPro analysis, which notes a perfect Piotroski Score of 9 indicating strong financial fundamentals.

The research firm expects Criteo to report second-quarter adjusted EBITDA in line with expectations, with potential modest upside from favorable foreign exchange tailwinds.

Benchmark noted that Criteo’s Retail Media segment faces difficult year-over-year comparisons due to one-time bad debt and partner payouts that occurred in the second quarter of 2024.

The firm projects Retail Media revenue growth of +4% in 2025 and -7% in 2026, reflecting the exit of its largest client from managed services and the departure of Uber (NYSE:UBER) Eats US.

Excluding these client transitions, Benchmark estimates Retail Media would show stronger growth of +14% in 2025 and +11% in 2026, while noting that the segment currently operates below company-wide margin levels.

In other recent news, Criteo has been active with several strategic partnerships and analyst assessments. The company announced a global integration with Mirakl Ads to enhance retail media capabilities for marketplace sellers. This collaboration aims to streamline advertising revenue generation for retailers through advanced campaign management and self-service tools. Additionally, Criteo expanded its global partnership with dentsu, incorporating its Commerce Media Platform across dentsu’s agency network to bolster commerce and performance media campaigns.

On the financial front, Criteo has faced several stock price target reductions from analysts. Benchmark adjusted its price target for Criteo to $46 from $55, citing challenges such as the transition of its largest client and the exit of Uber Eats US. JPMorgan also revised its price target to $27 from $39, maintaining a Neutral rating, due to limited macroeconomic visibility and strategic shifts by some clients. Similarly, Susquehanna set a new price target of $30, down from $38, following Criteo’s first-quarter earnings report and expected changes with retail media clients. These developments reflect a cautious outlook amid macroeconomic uncertainties and client strategy changes.

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