Raymond James reiterates Outperform rating on DoubleVerify stock at $20

Investing.com - Raymond James has reiterated an Outperform rating and $20.00 price target on DoubleVerify (NYSE:DV), currently trading at $15.96, citing the company’s resilience against AI Search and publisher traffic concerns. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value assessment.

The firm notes that DoubleVerify’s volume-based revenue model positions it neutrally or positively amid threats like AI Search that might impact publisher traffic. While pricing in the Open Web market is declining, impression volumes are holding steady or growing, as evidenced by 23% year-over-year Authentic Brand Suitability (ABS) growth in the second quarter of 2025. The company’s impressive 82.1% gross profit margin and 16.5% revenue growth in the last twelve months support this positive momentum.

Management expressed optimism about the health of DoubleVerify’s Open Web business during recent discussions, suggesting confidence in this segment despite industry headwinds.

Social and CTV segments, which currently represent approximately 30% of DoubleVerify’s total revenue, are expected to serve as growth engines for the company over the next few years.

Product innovation in these areas positions DoubleVerify to capitalize on broader advertising spend shifts toward social media and connected TV formats, according to Raymond James.

In other recent news, DoubleVerify reported its second-quarter 2025 earnings, showcasing a mixed performance. The company missed expectations on earnings per share, posting $0.05 compared to the anticipated $0.06, but exceeded revenue forecasts with $189 million against the expected $180.74 million. This represents a revenue surprise of approximately 4.57%. Following these results, BMO Capital raised its price target for DoubleVerify to $27, maintaining an Outperform rating, while highlighting growth in social and connected TV segments. Goldman Sachs, however, lowered its price target to $17, despite acknowledging that DoubleVerify’s revenue exceeded both its estimates and Street expectations by about 4%. The firm continues to maintain a Neutral rating on the stock. DoubleVerify’s performance was bolstered by advancements in social media, connected TV, and programmatic advertising. These recent developments reflect the company’s ongoing momentum in key product areas.

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