LiveRamp stock holds steady as Benchmark reiterates Buy rating

Investing.com - Benchmark has reiterated its Buy rating and $53.00 price target on LiveRamp Holdings Inc. (NYSE:RAMP) ahead of the company’s fiscal second-quarter earnings report scheduled for Wednesday, November 5, after market close. According to InvestingPro data, this target represents a 94% upside from the current price of $27.28, with analysts generally bullish as reflected in the consensus recommendation of 1.75 (Strong Buy). InvestingPro analysis suggests the stock is currently undervalued based on its Fair Value assessment.

The research firm expects LiveRamp’s total revenue and non-GAAP operating income to align with consensus estimates and company guidance. Benchmark’s analysis suggests Marketplace revenue will come in at approximately $46.5 million, representing about 12% year-over-year growth in Data Marketplace & Other revenue.

LiveRamp management appears confident in driving sequential Annual Recurring Revenue (ARR) expansion in the fiscal second quarter and throughout the remainder of the year, following two $1 million customer churn events that impacted first-quarter ARR by approximately $6 million to $10 million. The company views these customer losses as one-off events. Management’s confidence is further demonstrated by their aggressive share buyback program, an InvestingPro Tip that signals strong belief in the company’s future prospects. LiveRamp’s solid financial position is supported by its cash reserves exceeding debt obligations and a current ratio of 2.84.

Increased adoption of Cross Media Intelligence (CMI) could contribute to outperformance in the near-to-medium term, according to management statements cited by Benchmark. The company has also indicated that the previously reported bookings slowdown will continue to dissipate with commerce media and CMI incrementality.

Benchmark notes that LiveRamp management remains confident in its ability to reach the high end of fiscal year 2026 total revenue guidance of 10% year-over-year growth, provided economic conditions do not deteriorate through the end of the fiscal year.

In other recent news, LiveRamp Holdings Inc. reported a strong fiscal first quarter with revenue reaching $195 million, marking an 11% year-over-year growth and surpassing analyst expectations by 2%. This positive performance led Susquehanna to reiterate its Positive rating with a $50.00 price target. Benchmark also adjusted its outlook, raising the price target from $51 to $53 while maintaining a Buy rating, highlighting LiveRamp’s impressive subscription revenue and operating income despite a temporary slowdown in Annual Recurring Revenue.

Additionally, DA Davidson reiterated its Buy rating with a $45.00 price target after discussions with LiveRamp’s executives about the adtech ecosystem. In corporate governance news, LiveRamp shareholders approved an amendment to the company’s 2005 Equity Compensation Plan, increasing available shares by 2.5 million. These developments come as the company navigates a favorable macroeconomic environment.

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