JMP Securities lifts Viant stock target to $24, keeps outperform

On Monday, JMP Securities increased their price target for Viant Technology Inc (NASDAQ:DSP) shares, raising it to $24.00 from the previous $17.00, while maintaining a Market Outperform rating. The firm's analyst highlighted Viant's consistent strong performance, evidenced by its impressive 145.45% return over the past year according to InvestingPro data, and its ability to capture more of the mid-market share. Analysis suggests the stock is currently undervalued based on InvestingPro's Fair Value model. The analyst also pointed to the ongoing benefits Viant is experiencing from the shift of $166 billion in linear TV advertising budgets towards Connected TV (CTV), which is bolstered by Viant's Direct Access program and Household ID as key differentiators in the market.

Viant's successful market execution and the strategic positioning of its products were cited as reasons for the price target adjustment. The company has been effectively securing a larger portion of mid-market budgets, delivering 23.73% revenue growth in the last twelve months, and is expanding its conversations with larger brands and agencies. InvestingPro data shows the company maintains a "GREAT" financial health score of 3.1, with strong analyst consensus supporting its growth trajectory. This strategic approach has positioned Viant well within the industry, leveraging the shift in advertising trends towards digital platforms.

The research firm is particularly optimistic about ViantAI, which they see as a significant catalyst for Viant in 2025. This optimism is based on the expectation of another quarter of exceeding performance targets and raising future projections, a pattern that Viant has established in recent times. For deeper insights into Viant's valuation and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro, which covers over 1,400 US stocks with detailed analysis and actionable intelligence. The analyst expressed confidence that ViantAI will drive further market share gains for the company.

Viant's strong execution and the anticipated positive impact of ViantAI on the company's growth prospects are central to JMP Securities' decision to reiterate their positive stance on the stock. The firm's confidence in Viant's trajectory is reflected in the substantial increase in the price target, signaling a bullish outlook on the company's financial performance and market position.

The analyst's statement concluded with a reiteration of the Market Outperform rating and an emphasis on the raised price target, which underscores the firm's belief in Viant's potential for continued success and market expansion in the coming year. The stock currently trades near its 52-week high of $21.74, with strong momentum reflected in its 69.17% price return over the past six months.

In other recent news, Viant Technology has seen robust financial results, with a 34% increase in revenue and a record $14.7 million in adjusted EBITDA for the third quarter. The company has also acquired IRIS.TV, a content identification platform, expected to enhance its Connected TV targeting capabilities. These developments are part of recent strides in Viant Technology's business operations.

The acquisition has already demonstrated significant results, such as a 300% lift in ad recall and a 152% increase in sales for a campaign with Carl's Jr. Moreover, Viant's new AI-driven advertising platform, ViantAI, has garnered 500 early access sign-ups and is anticipated to democratize programmatic advertising.

Canaccord Genuity has maintained a Buy rating on Viant Technology, citing the company's strong financial health and potential for growth. The firm has increased the price target to $24.00, highlighting Viant's investment in AI tools and the increasing share of programmatic advertising in non-digital mediums as key factors.

However, Viant anticipates a low-double-digit to low-teens growth in operating expenses for 2025 due to the acquisition adding overhead. Despite this, Viant's recent performance and strategic moves have set a positive tone for its future. The company has added over 30 new customers in Q3, each generating an average of $400,000 in contribution ex-TAC.

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