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Investing.com - Needham has reiterated its Buy rating on TechTarget, Inc. (NASDAQ:TTGT) and maintained its $15.00 price target following the company’s third-quarter results. This target represents nearly 188% upside from the current price of $5.21, with InvestingPro data showing the stock has fallen over 83% in the past year. Notably, InvestingPro’s Fair Value analysis suggests TechTarget is currently undervalued.
TechTarget reported Q3 results with revenue and EBITDA in line with estimates, which Needham views as sequential progress for the company as visibility into trends improves following the Informa Tech merger in late 2024. The company’s LTM EBITDA stands at $38.33 million, with a moderate debt level of $137.61 million.
The company’s Q4/25 guidance remains essentially unchanged, with TechTarget set to benefit from a full quarter of lower operating expenses following a cost-cutting plan implemented on September 1.
Needham noted that TechTarget is experiencing increased viewership of webinars through BrightTalk and stable readership trends for white papers, countering the thesis that AI would replace content consumption for B2B technology buyers.
While free cash flow is expected to remain depressed in 2026 due to one-time integration costs, Needham anticipates a recovery in 2027 as the conversion of EBITDA to free cash flow improves. Despite current negative free cash flow of -$20.32 million, InvestingPro reveals that analysts expect TechTarget to be profitable this fiscal year with an EPS forecast of $0.60. For deeper insights into TTGT and 1,400+ other stocks, check out InvestingPro’s comprehensive Research Reports.
In other recent news, TechTarget Inc. reported its second-quarter earnings with a significant miss on earnings per share (EPS), posting -$5.58 compared to the expected $0.44. This resulted in a negative EPS surprise of 1368.18%. Despite this, the company’s revenue exceeded expectations by 93.92%, which was a notable achievement. Following these results, Needham reiterated its Buy rating on TechTarget stock, maintaining a price target of $15. However, they noted that EBITDA was below expectations due to low fixed cost leverage.
Additionally, TechTarget announced a 41% expansion of its proprietary intent data and launched a new unified portal for B2B technology marketing. This expansion includes 75 new digital communities and 2,000 additional topics, enhancing coverage in various technology categories and industries. In leadership changes, Staci M. Gullotta was appointed as the new Chief Marketing Officer, succeeding John Steinert. These developments reflect TechTarget’s ongoing efforts to innovate and adapt in the B2B technology sector.
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