DoubleVerify stock price target raised to $27 at BMO on social and CTV growth

Investing.com - BMO Capital raised its price target on DoubleVerify (NYSE:DV) to $27.00 from $26.00 on Wednesday, maintaining an Outperform rating following the company’s second-quarter earnings results. According to InvestingPro data, the stock appears undervalued based on its Fair Value analysis, with the company maintaining impressive gross profit margins of 82.1%.

DoubleVerify delivered a 4.5% beat on revenue and a 6.5% beat on adjusted EBITDA for the second quarter of 2025, with positive performance across its Measurement, Activation, and Supply-Side segments.

The company has raised its 2025 revenue growth guidance to 15% year-over-year, up from its previous projection of 13%, while maintaining its adjusted EBITDA margin guidance at 32%.

BMO Capital highlighted social media and connected TV (CTV) as key growth drivers for DoubleVerify, noting these segments should contribute to an expected revenue acceleration in 2026.

The investment firm considers DoubleVerify attractive at 9 times 2026 estimated adjusted EBITDA, expecting shares to re-rate over time as the company executes on opportunities in the social and CTV markets.

In other recent news, DoubleVerify Holdings Inc. reported its second-quarter 2025 earnings, showcasing a mixed financial performance. The company missed earnings per share (EPS) expectations, posting $0.05 compared to the anticipated $0.06, which is a negative surprise of 16.67%. However, DoubleVerify exceeded revenue forecasts by reporting $189 million, surpassing the projected $180.74 million, which represents a 4.57% positive surprise. Additionally, the company raised its revenue guidance for the future, reflecting optimism in its growth trajectory. In a separate development, Goldman Sachs adjusted its price target for DoubleVerify to $17.00 from $18.50, while maintaining a Neutral rating on the stock. The firm highlighted that the company’s Q2 2025 revenues exceeded both Goldman Sachs estimates and broader market expectations by approximately 4%. This revenue growth was attributed to strong performance in areas such as social media, connected TV, and programmatic advertising. These recent developments provide investors with key insights into DoubleVerify’s current financial standing and market position.

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