Loop Capital cuts IAS stock price target to $12, maintains Buy rating

Published 13/05/2025, 13:14
Loop Capital cuts IAS stock price target to $12, maintains Buy rating

Tuesday, Loop Capital analysts revised the price target for Integral Ad Science Holding Corp (NASDAQ:IAS) to $12.00, down from the previous $13.00, while maintaining a Buy rating on the stock. The adjustment follows the company’s first-quarter results for 2025, which surpassed consensus expectations. According to InvestingPro data, IAS maintains strong financial health with a current ratio of 4.01 and holds more cash than debt on its balance sheet.

Integral Ad Science reported a robust performance in the first quarter, with both revenue and adjusted EBITDA beating consensus by 6% and 2%, respectively. The company’s recent momentum is evident in its impressive 12.1% return over the past week, with revenue growing at 13.8% over the last twelve months. This strong showing prompted the company to raise its full-year 2025 outlook. In response to these results, Loop Capital analysts recalibrated their forecasts, which led to the reduction in the price target to $12, based on 8.0 times the firm’s adjusted EBITDA projection for 2026.Discover more insights about IAS with InvestingPro, which offers exclusive financial metrics and 12 additional ProTips for informed investment decisions.

The analysts believe that while Integral Ad Science has demonstrated success in the open web, there remains investor skepticism about the company’s ability to achieve similar results in social media traffic. Despite this, Loop Capital sees a continued opportunity for the stock, anticipating over 20% upside potential from its current level, even with the lowered valuation multiple.

The new price target of $12 still represents a slight discount to the valuation of DoubleVerify (NYSE:DV), a competitor, despite Integral Ad Science now exhibiting higher growth rates. Loop Capital’s maintained Buy rating reflects their view that, even with a lower price target, there is significant growth potential for Integral Ad Science shares.

In other recent news, Integral Ad Science (IAS) reported impressive financial results for the first quarter of 2025, exceeding analyst expectations. The company achieved a 17% year-over-year increase in revenue, totaling $134.1 million, surpassing the anticipated $129.17 million. Earnings per share (EPS) also outperformed forecasts, reaching $0.05 compared to the expected $0.03. The growth was largely driven by significant gains in the Optimization and Publisher revenue segments, which increased by 24% and 33%, respectively. KeyBanc Capital Markets maintained a Sector Weight rating on IAS, acknowledging the company’s strong performance but expressing caution regarding the broader industry’s near-term prospects. The company has set its revenue guidance for the second quarter of 2025 between $142 million and $144 million, projecting an 11% year-over-year growth. IAS continues to focus on its strategic initiatives, including the launch of new AI-powered products and expanded partnerships. The company’s ongoing emphasis on optimization is seen as a key driver of its growth trajectory.

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