JFrog stock rises as Cantor Fitzgerald maintains Overweight rating after strong Q2
Investing.com - Citizens JMP downgraded Ibotta Inc (NYSE:IBTA) from Market Outperform to Market Perform on Thursday, citing concerns about product development timelines and revenue visibility. The stock, which has declined over 54% in the past six months, currently trades below InvestingPro’s Fair Value estimate, despite maintaining impressive gross profit margins of 85%.
The research firm noted that Ibotta’s product investments to demonstrate incrementality are taking longer than anticipated, while the company simultaneously restructures its sales force amid limited revenue visibility.
Citizens JMP acknowledged that Ibotta still maintains a significant opportunity in the consumer packaged goods (CPG) performance spending market, estimated at $200 billion, and benefits from key retailer relationships with Walmart, Instacart, and DoorDash.
The downgrade reflects concerns that sustaining advertising budgets from CPG partners requires more extensive product development than previously understood by the analysts, creating near-term revenue uncertainty.
Citizens JMP significantly reduced its 2026 revenue and EBITDA estimates for Ibotta, indicating it would reassess its rating once growth rebounds, while concluding that the risk/reward balance for the stock appears balanced at current levels.
In other recent news, Ibotta Inc. reported its second-quarter 2025 earnings, which showed a slight miss on earnings per share (EPS) expectations. The company posted an actual EPS of $0.49, falling short of the forecasted $0.52. Revenue for the quarter was reported at $86 million, representing a 2% decline compared to the same period last year. Despite the earnings miss, the company’s stock experienced a 2.98% increase in after-hours trading. This positive market response may be linked to Ibotta’s strategic initiatives and future guidance, which suggest potential growth. Analysts and investors are closely watching the company’s next moves to evaluate its growth trajectory. The recent developments highlight the importance of strategic planning and market expectations in influencing investor sentiment.
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