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Investing.com - Truist Securities lowered its price target on DoubleVerify (NYSE:DV) to $17.00 from $22.00 on Monday, while maintaining a Buy rating on the digital media measurement company. The stock currently trades at $9.39, down over 51% year-to-date, with InvestingPro analysis indicating the company is significantly undervalued.
The price target reduction follows DoubleVerify’s mixed third-quarter results and fourth-quarter outlook, which reflected softness in the retail vertical that accounts for approximately 14% of the company’s revenue.
Despite challenges in retail, Truist noted that DoubleVerify continues to show sustained momentum with existing customers and healthy new customer acquisition across other segments.
While not providing formal guidance, DoubleVerify management indicated that 10% growth represents a base case for fiscal year 2026, with stable AEBITDA margins expected to remain around 33%.
Truist highlighted that at 1.6x EV/Revenue and 4.9x EV/EBITDA based on FY26 estimates, DoubleVerify is trading at "melting ice cube levels," which the firm believes is unwarranted, noting the stock trades at a steep discount to the acquisition price of its smaller competitor IAS.
In other recent news, DoubleVerify has released its third-quarter results, which presented a mixed picture for investors. The company’s total revenue met its guidance but was slightly below consensus estimates by about 1%. Profitability exceeded expectations, attributed to effective expense management and operating leverage. Analysts have responded by adjusting their price targets for DoubleVerify. Canaccord Genuity lowered its price target to $18, citing mixed results but maintained a Buy rating. Truist Securities also reduced its target to $17, noting softness in the retail sector, which makes up a notable portion of the company’s revenue. Needham cut its target to $12, pointing out margin concerns despite revenue surpassing their estimates and the introduction of six new AI and CTV products. RBC Capital adjusted its target to $20, describing the quarter as mixed in revenue performance but highlighting better-than-expected adjusted EBITDA. These developments reflect various analysts’ perspectives on DoubleVerify’s recent financial performance and future outlook.
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