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On Tuesday, Benchmark analyst Mark Zgutowicz confirmed a Buy rating for LiveRamp Holdings Inc. (NYSE: NYSE:RAMP), with a steady price target of $45.00. According to InvestingPro data, the stock appears undervalued, with analyst consensus remaining bullish at 1.86 (where 1.0 represents Strong Buy). The company currently trades at $29.18, with analyst targets ranging from $26 to $50. Zgutowicz addressed the upcoming fourth fiscal quarter earnings report for LiveRamp, scheduled to be announced after the market closes on Wednesday, May 21, 2025. He acknowledged potential industry-wide concerns, noting that LiveRamp may experience a weaker data collaboration prospecting environment, which accounts for approximately 25-30% of the company’s total subscription revenue.
The cautionary stance comes after industry peers like Criteo hinted at a pause in commerce media investments due to macroeconomic factors. Despite this, Zgutowicz remains optimistic about LiveRamp’s revenue growth, deeming the forecasted 7.6% year-over-year increase for the next twelve months conservative against the backdrop of stable secular growth in commerce media. InvestingPro data shows the company achieved 14.5% revenue growth in the last twelve months, with a strong financial health score of 3.05 out of 5, rated as "GREAT."
Zgutowicz highlighted the company’s recent performance, pointing out that LiveRamp’s Net Revenue Retention (NRR) and Revenue Per Customer (RPO) showed quarter-over-quarter acceleration. He also mentioned that nearly three-quarters of the new logo and upsell dollars in the third fiscal quarter came from diverse sectors such as media, travel, healthcare, restaurants, automotive, and advertising. This diversification could help mitigate any potential slowdown in new client acquisition.
In his analysis, Zgutowicz compared the projected 7.6% growth rate to LiveRamp’s long-term target of a 10-15% Compound Annual Growth Rate (CAGR) in revenue, which is based on a mix of 70% growth from existing customers and 30% from new customers. He concluded that if LiveRamp’s upcoming report does not indicate significant headwinds affecting new customer demand, particularly in RPO, there could be a positive revision to the fiscal year 2026 estimates. With earnings scheduled for May 21, InvestingPro subscribers can access additional insights through the comprehensive Pro Research Report, including 10+ exclusive ProTips and detailed financial metrics that help evaluate the company’s growth potential.
In other recent news, LiveRamp Holdings, Inc. announced the departure of its Chief Product Officer, Kimberly Bloomston. Effective March 1, 2025, Bloomston will receive a severance package totaling $1,088,819, which includes her base salary and bonuses. Additionally, she will receive a cash payment for COBRA health insurance continuation for herself and her dependents. Bloomston has also agreed to a consulting role with LiveRamp until March 31, 2026, earning $215 per hour, with continued vesting of her time-based equity awards.
Meanwhile, Benchmark analysts have maintained a Buy rating on LiveRamp with a price target of $45.00. The firm highlighted LiveRamp’s initiative to simplify its pricing structure, which could increase revenue and cost savings. The company plans to pilot a new pricing model with 10% of its customers over six to nine months, simplifying from 20-30 metrics to just five. This strategy aims to offer brand marketers better budget visibility and control while engaging publishers and platforms on a usage basis. Benchmark’s analysis suggests this pricing overhaul could lead to more predictable and scalable revenue streams for LiveRamp.
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