These are top 10 stocks traded on the Robinhood UK platform in July
On Tuesday, Benchmark analysts maintained their Buy rating and $42.00 price target for LiveRamp Holdings Inc. (NYSE: NYSE:RAMP), ahead of the company’s expected earnings report. According to InvestingPro data, the stock currently trades at $34.03, with analyst targets ranging from $24 to $50. InvestingPro analysis indicates the stock appears undervalued based on its Fair Value calculation. LiveRamp, a technology company specializing in data connectivity and identity resolution, is scheduled to report its fiscal third-quarter earnings after market close on Wednesday, February 5.
The firm anticipates that LiveRamp will deliver total revenue in line with expectations for the quarter, driven by an increase in variable subscription revenue. This projection comes despite a slight downward revision of the Data Marketplace revenue, based on Benchmark’s industry correlation analysis. InvestingPro data shows LiveRamp has maintained strong revenue growth of ~14% over the last twelve months, with an impressive gross profit margin of 72%. The third fiscal quarter is particularly significant for LiveRamp as it represents the company’s largest renewal period, which is likely to lead to quarter-over-quarter improvement in Recognized Purchase Obligations (RPO) trends. This improvement is expected to offer better visibility into the company’s subscription revenue trajectory for the next twelve months.
Benchmark highlighted that Annual Recurring Revenue (ARR) is a critical indicator of LiveRamp’s subscription revenue for the next twelve months, historically accounting for 90-95% of fixed subscription revenue, compared to about 70% for Current RPO. The analysts’ assumptions for the next twelve months’ fixed subscription revenue are conservative, factoring in approximately 96% and 74% of second fiscal quarter ARR/RPO, respectively.
Furthermore, for the fourth fiscal quarter ending in March, Benchmark anticipates that Data Marketplace revenue will be 5% below the consensus despite a modeled quarter-over-quarter acceleration. This suggests that market consensus might be overly optimistic about potential growth driven by unquantified upside from Oracle (NYSE:ORCL) clients. InvestingPro subscribers have access to 10+ additional exclusive insights about LiveRamp’s financial health, which currently rates as "GOOD" with a score of 2.88 out of 5.
In summary, Benchmark’s outlook for LiveRamp remains positive. The analysts underscore LiveRamp’s strong positioning with its identity and data clean room solutions in a market increasingly reliant on first-party data. They express confidence that the recent variability in RPO is more likely due to the timing of renewals rather than fundamental issues with the company’s business model. For a comprehensive analysis of LiveRamp’s valuation and growth prospects, investors can access the detailed Pro Research Report available exclusively on InvestingPro, which covers over 1,400 US stocks with expert insights and actionable intelligence.
In other recent news, LiveRamp Holdings Inc. experienced a shift in its stock rating as Morgan Stanley (NYSE:MS) downgraded it from Overweight to Equalweight. This decision was influenced by several factors including a lack of strong catalysts for growth, the expected impact of phasing out third-party cookies on customer acquisition, and underwhelming benefits from the acquisition of Habu. Additionally, a year-over-year decline in key revenue indicators has tempered expectations for a near-term revenue increase. Despite the downgrade, Morgan Stanley maintained a price target of $35.00, indicating a belief in potential growth at a more modest pace.
In parallel developments, LiveRamp reported significant top line growth, client progress, and margin improvement in its fiscal 2025 second quarter earnings call. CEO Scott Howe and CFO Lauren Dillard expressed optimism about the company’s performance and future prospects. However, they also emphasized potential risks and uncertainties that could impact future results. These recent developments highlight the evolving narrative surrounding LiveRamp’s financial health and growth prospects.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.