Jefferies cuts comScore stock target to $6.25, maintains hold

Published 05/03/2025, 12:10
Jefferies cuts comScore stock target to $6.25, maintains hold

On Wednesday, Jefferies analyst Surinder Thind revised the price target for comScore (NASDAQ:SCOR) shares, reducing it to $6.25 from the previous $7.00, while reiterating a Hold rating on the stock. Currently trading at $5.71, the stock has declined nearly 70% over the past year and sits well below its 52-week high of $20.18. The adjustment follows comScore’s fourth-quarter results, which exceeded expectations, and the company’s 2025 guidance, which met forecasts. Thind noted that the company’s Cross-platform segment continues to perform well, but this is being counterbalanced by persistent difficulties in the Syndicated and Custom Digital Solutions segments.

The analyst’s commentary highlighted that the demand outlook for comScore was largely positive. However, the uncertainty surrounding the potential recovery of the weaker segments of the business prompted a cautious stance. Thind pointed out that while comScore is still in the midst of a turnaround effort, the improvements made to its balance sheet should not be overlooked.

In response to the latest financial disclosures, Jefferies also adjusted its 2025 adjusted earnings per share (EPS) estimate for comScore to $4.15. This revision reflects a more conservative outlook based on the current performance and challenges faced by the company.

Despite the challenges, the Hold rating suggests that Jefferies sees potential in comScore’s ongoing efforts to stabilize and grow its business. The lowered price target indicates a recalibration of expectations in light of the company’s mixed performance and the ongoing work required to fully realize its turnaround strategy.

In other recent news, Comscore Inc. reported its fourth-quarter and full-year 2024 earnings, showing a 4.1% decline in full-year revenue to $356 million. Despite the dip, the Movies Business segment saw a 5% growth, and cross-platform revenue increased by 20%, indicating strong demand. The company’s adjusted EBITDA also decreased by 3.8% to $42.4 million. Comscore projects its 2025 revenue to be between $360 million and $370 million, with an adjusted EBITDA margin expected to range from 12% to 15%. Additionally, the company anticipates continued growth in its cross-platform products. The strategic restructuring and new product launches were highlighted as key areas for future growth. Notably, Comscore secured new multi-year contracts with major agency holding companies, which contributed to increased utilization of its TV currency in the fourth quarter. The company also strengthened its cash position with new financing arrangements and a restructured deal with Charter, expected to save $35 million over the agreement’s remaining term.

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