IREN proposes $875 million convertible notes offering due 2031
On Thursday, BMO Capital Markets revised its price target for Criteo S.A. (NASDAQ:CRTO) shares, increasing it to $60 from the previous target of $48, while reaffirming an Outperform rating on the stock. The adjustment follows Criteo’s impressive fourth-quarter results for 2024, which surpassed market expectations. According to InvestingPro data, the company maintains a perfect Piotroski Score of 9, indicating exceptional financial strength, while delivering significant returns over the past week and three months.
Criteo, a global technology company specializing in digital advertising and marketing, reported a 2% increase in Contribution ex-TAC (Traffic Acquisition Costs) above the consensus estimates, and its adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) was 22% higher than what analysts had anticipated. This performance was attributed to a robust holiday season that encouraged advertisers to exceed volume thresholds, resulting in higher fees for the company. InvestingPro analysis reveals that Criteo holds more cash than debt on its balance sheet, with liquid assets exceeding short-term obligations, demonstrating solid financial management.
The firm’s guidance for the fiscal year 2025 indicates a mid-single-digit growth in Contribution ex-TAC, aligning with market projections. Moreover, the projected adjusted EBITDA margin of 33.5% at the midpoint slightly exceeds consensus estimates. According to BMO Capital’s analysis, Criteo’s shares are currently trading at an attractive valuation of approximately 6 times the forecasted adjusted EBITDA for fiscal year 2026. InvestingPro data shows the stock trading at a low P/E ratio relative to near-term earnings growth, with two analysts recently revising their earnings expectations upward. For deeper insights into Criteo’s valuation and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
The analyst at BMO Capital expressed confidence in Criteo’s positioning to become a long-term leader in the retail media sector. This sentiment is backed by the company’s strong financial performance and its strategic outlook, which seems to be resonating well with investors and market analysts alike. As a result of these factors, BMO Capital has reiterated its Outperform rating and increased its estimates alongside the target price for Criteo’s stock.
In other recent news, Criteo S.A. is set to announce its fourth-quarter earnings, an event that has attracted the attention of various analyst firms. Benchmark analysts have maintained a Buy rating for Criteo’s stock with a $51 price target, citing potential growth opportunities and easing retail media take rate comparisons. Similarly, DA Davidson reiterated its Buy rating on Criteo’s shares, setting a $53 price target despite adjusting financial estimates due to currency exchange challenges.
In leadership developments, Criteo has appointed Michael Komasinski as its new Chief Executive Officer, effective February 15, 2025. Komasinski, with his extensive experience in AdTech and a record of driving growth, is expected to further strengthen Criteo’s position as a leading commerce media platform.
In its recent Retail Media Investor Update, Criteo outlined a total addressable market of $207 billion, indicating a substantial market to tap into. However, despite the optimistic outlook presented by Criteo’s management, KeyBanc maintained its Sector Weight rating on Criteo’s shares, suggesting a cautious approach due to the rapidly evolving competitive landscape. As these developments unfold, investors continue to monitor Criteo’s strategic moves closely.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.