Criteo stock price target lowered to $38 by Benchmark on retail challenges

Investing.com - Benchmark lowered its price target on Criteo S.A. (NASDAQ:CRTO) to $38.00 from $42.00 on Thursday, while maintaining a Buy rating on the advertising technology company. Despite the reduced target, analysts remain bullish with a consensus implying 67% upside potential from the current price of $22.28, according to InvestingPro data.

The price target reduction comes as the retail media industry faces challenges from commerce transactions shifting toward agentic properties, according to Benchmark’s analysis. These headwinds align with InvestingPro data showing analysts anticipate a 0.4% sales decline for Criteo in the current fiscal year.

Despite these headwinds, Benchmark believes Criteo’s positioning with leading LLM labs and retailers’ first-party sites will allow the company to meet demand regardless of where it occurs in the evolving commerce landscape.

The research firm noted Criteo will likely power agentic commerce recommendations at major AI labs in the future, leveraging its unique first-party SKU-level data tied to outcomes, which could help address retailer traffic declines.

Separately, Criteo announced plans to redomicile in Luxembourg, a move that will remove its limited repurchase clause aligned with French laws and potentially unlock significant share buyback opportunities beginning in the third quarter of 2026. InvestingPro data shows management has already been aggressively buying back shares, with the company maintaining a high shareholder yield and an impressive 18% free cash flow yield. Criteo also holds more cash than debt on its balance sheet, positioning it well for future share repurchases.Want deeper insights into Criteo’s valuation and prospects? InvestingPro offers a comprehensive Pro Research Report on CRTO, one of 1,400+ US equities covered with in-depth analysis and actionable intelligence.

In other recent news, Criteo reported strong third-quarter 2025 financial results, significantly surpassing analysts’ expectations. The company’s adjusted earnings per share of $1.31 exceeded the forecast of $0.93 by 40.86%, and revenue reached $470 million, outperforming the projected $281.33 million by 67.06%. DA Davidson reiterated its Buy rating on Criteo, citing these solid results and providing a constructive outlook for the fourth quarter. Meanwhile, BMO Capital adjusted its price target for Criteo to $40 from $51, maintaining an Outperform rating. BMO noted the company’s Contribution ex-TAC and Adjusted EBITDA were 2.5% and 25% above consensus estimates, respectively. These developments highlight Criteo’s strong performance in the quarter, with analysts recognizing its achievements. The focus on AI was mentioned as a factor in BMO Capital’s revised price target. Criteo’s results have drawn positive attention from multiple analyst firms, reflecting confidence in its recent performance.

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