Wang & Lee Group board approves 250-to-1 reverse share split
On Tuesday, Benchmark analysts maintained a Buy rating for Criteo S.A. (NASDAQ:CRTO) shares, with a steady price target of $51.00. The affirmation comes as Criteo prepares to release its fourth quarter earnings on Wednesday, February 5. The analysts highlighted Criteo’s significant potential, noting that the stock’s roughly 25% decline from its August highs presents an attractive entry point for investors. Currently trading at $38.15, InvestingPro analysis indicates the stock is undervalued, with a "GREAT" overall financial health score of 3.0.
The optimism is partly due to expectations of easing retail media take rate comparisons and the untapped potential of Microsoft (NASDAQ:MSFT) advertiser volumes. While Criteo’s retail media take rate is projected to decline by an estimated 120 basis points year-over-year in 2025, this follows a forecasted 150 basis points drop in 2024. The analysts believe that the impact of Criteo’s largest client transitioning to a direct sales model in the first quarter of 2024 has been factored into these conservative estimates. The company maintains strong fundamentals, with a healthy gross profit margin of 49.25% and more cash than debt on its balance sheet, according to InvestingPro data.
Benchmark analysts anticipate that Criteo’s management will offer insights into the expected volumes from Microsoft advertisers during the earnings call, although initial forecasts are likely to be cautious. The analysts’ reiteration of the Buy rating reflects their confidence in Criteo’s strategic positioning and the company’s potential for growth in the coming year.
Investors and stakeholders will be watching closely as Criteo unveils its fourth-quarter performance, seeking confirmation of the analysts’ positive outlook and further details on the company’s trajectory for 2025. The earnings report and subsequent management commentary will provide a clearer picture of Criteo’s financial health and its ability to capitalize on the opportunities outlined by Benchmark.
In other recent news, Criteo S.A. has been the subject of several recent developments. DA Davidson has maintained its Buy rating on Criteo’s stock, despite adjusting its financial estimates for the company due to currency exchange challenges. The firm has lowered its fourth-quarter CexT estimate by around $4 million to $326.3 million and revised the adjusted EBITDA forecast for the same period from $117.4 million to $116.5 million.
In addition, Criteo announced the appointment of Michael Komasinski as its new Chief Executive Officer, effective February 15, 2025. Komasinski brings over two decades of experience in AdTech and is expected to drive the company’s AI-fueled transformation and strengthen its position as a leading commerce media platform.
KeyBanc maintained its Sector Weight rating on Criteo’s shares, expressing reservations about the company’s ability to meet the market’s expectations for its Retail Media contribution, particularly for the years 2025 and 2026. Conversely, BMO Capital Markets sustained its positive stance on Criteo, maintaining an Outperform rating with a $48.00 price target, highlighting Criteo’s potential for long-term growth in the Retail Media sector. These are among the recent developments concerning Criteo.
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