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Investing.com - Stifel has reduced its price target on DoubleVerify (NYSE:DV) to $15.00 from $20.00 while maintaining a Buy rating on the digital media measurement company. Currently trading at $10.27, DoubleVerify appears undervalued according to InvestingPro analysis, despite having fallen over 16% in the past week.
The price target adjustment follows DoubleVerify’s third-quarter results, which missed expectations on revenue but exceeded projections on the bottom line. The company’s fourth-quarter guidance also fell short of analyst expectations for top-line performance. Despite these challenges, DoubleVerify maintains impressive gross profit margins of 82%, reflecting strong operational efficiency.
Management provided preliminary thoughts on 2026, suggesting a "base case" of approximately 10% revenue growth compared to Street expectations of 11.7%. The company indicated that EBITDA margins would remain similar to 2025 levels, around 33%. This projection appears conservative given DoubleVerify’s 5-year revenue CAGR of 29%.
Stifel noted that the 2026 revenue growth projection might prove conservative as the year progresses, pointing to potential expansion across faster-growing channels including connected TV, social media, and AI-related services, as well as new product introductions.
The research firm highlighted that DoubleVerify’s original 2025 guidance called for 10% growth, but the company is now on track to deliver 14% growth for the current year, suggesting a similar pattern could emerge in 2026.
In other recent news, DoubleVerify has experienced several adjustments in its stock price targets following its mixed third-quarter results. Truist Securities lowered its price target for the company to $17, citing softness in the retail sector, which makes up about 14% of DoubleVerify’s revenue. Canaccord Genuity also reduced its price target to $18, noting that while the company’s revenue was in line with guidance, it was about 1% below consensus. However, profitability exceeded expectations due to strong expense management and operating leverage. Needham cut its target to $12, expressing concerns over margins, although it acknowledged that DoubleVerify’s revenue surpassed its estimates and highlighted the launch of six new AI and CTV products. RBC Capital adjusted its price target to $20, describing the quarter as mixed in terms of revenue, but noted that adjusted EBITDA exceeded expectations. Despite these changes, all firms maintained a positive rating on the stock, with Truist, Canaccord, and Needham maintaining a Buy rating, and RBC Capital an Outperform rating. These developments reflect the analysts’ varied perspectives on DoubleVerify’s recent performance and future potential.
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