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Investing.com - BMO Capital lowered its price target on Criteo S.A. (NASDAQ:CRTO) to $40.00 from $51.00 on Thursday, while maintaining an Outperform rating on the ad-tech company’s stock. Despite trading at $22.17, significantly below InvestingPro’s Fair Value assessment, the stock has fallen nearly 44% year-to-date.
The firm noted Criteo delivered strong third-quarter 2025 results, with Contribution ex-TAC and Adjusted EBITDA coming in 2.5% and 25% above consensus estimates, respectively. The company maintains a "GREAT" overall financial health score of 3.32 according to InvestingPro data, with particularly strong relative value metrics.
BMO Capital highlighted that Criteo reiterated its full-year 2025 Contribution ex-TAC guidance and now expects Adjusted EBITDA margins to reach 34%, compared to its previous forecast of 33-34%.
The analyst report emphasized Criteo’s increasing focus on AI agent opportunities, leveraging its real-time inventory, pricing, and MCP infrastructure capabilities. A proof-of-concept with a leading AI provider is currently underway, which could potentially open new retail opportunities.
BMO Capital views Criteo’s risk/reward profile as attractive, noting the stock trades at approximately 2.6 times 2026 estimated Adjusted EBITDA, and considers the company well-positioned as a strategic asset in the broader ad-tech ecosystem.
In other recent news, Criteo reported impressive third-quarter 2025 earnings, significantly surpassing analysts’ expectations. The company achieved an adjusted earnings per share (EPS) of $1.31, which is 40.86% higher than the projected $0.93. Additionally, Criteo’s revenue reached $470 million, far exceeding the anticipated $281.33 million by 67.06%. These results highlight a strong performance for the company, marking a notable earnings beat. The positive earnings report was a key development for Criteo, reflecting its robust financial health. Investors and analysts are likely to keep a close watch on Criteo following these results.
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