DoubleVerify stock price target lowered to $17 by Goldman Sachs

Published 06/08/2025, 11:24
DoubleVerify stock price target lowered to $17 by Goldman Sachs

Investing.com - Goldman Sachs lowered its price target on DoubleVerify (NYSE:DV) to $17.00 from $18.50 while maintaining a Neutral rating on the stock. According to InvestingPro analysis, the stock appears undervalued at current levels, trading at $15.48 with a P/E ratio of 51x.

The firm noted that DoubleVerify’s Q2 2025 revenues exceeded both Goldman Sachs estimates and Street expectations by approximately 4%, surpassing management’s previously raised guidance. This performance was driven by momentum in key product areas including social media (both pre-bid and measurement), connected TV, and programmatic advertising. The company maintains impressive gross profit margins of 82.3% and has shown strong revenue growth of 15.3% over the last twelve months. InvestingPro data reveals 8 additional key metrics and insights available for subscribers.

Goldman Sachs highlighted that despite a volatile and uncertain macroeconomic environment, DoubleVerify’s operations are experiencing strong alignment between advertisers, channels, and objectives. The company continues to focus on building advertising solutions targeted at areas where engagement and advertising dollars are shifting. DoubleVerify maintains a strong financial health score of 2.89 (GOOD) according to InvestingPro analysis, with more cash than debt on its balance sheet.

DoubleVerify management pushed back against recent narratives about headwinds to the open web from artificial intelligence, while maintaining its focus on growth investments aimed at broadening advertiser growth and ad budget allocation beyond just 2025.

In the short term, Goldman Sachs expects investors to remain focused on the interplay between DoubleVerify’s execution and the macroeconomic environment’s impact on advertising trends in the second half of 2025, while noting the company’s return to more linear and consistent operating performance.

In other recent news, DoubleVerify Holdings Inc. reported its second-quarter 2025 earnings, showing mixed results. The company missed its earnings per share (EPS) target, posting $0.05 instead of the expected $0.06, which was a 16.67% negative surprise. However, DoubleVerify exceeded revenue expectations with $189 million, surpassing the forecasted $180.74 million, marking a 4.57% positive surprise. Additionally, the company raised its revenue guidance, indicating confidence in its future performance. These developments come amid a backdrop of analyst evaluations and market reactions. Despite the EPS miss, the revenue beat and guidance adjustment suggest a complex but potentially optimistic outlook for the company. Investors and analysts are likely to monitor how DoubleVerify navigates these mixed signals in its financial performance.

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