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Investing.com - Raymond (NSE:RYMD) James upgraded Viant Technology Inc (NASDAQ:DSP) from Outperform to Strong Buy and raised its price target to $20.00 from $18.00. The stock, currently trading at $13.53, has seen a challenging year with a YTD decline of 29%, though InvestingPro data shows strong fundamentals with more cash than debt on its balance sheet.
The upgrade reflects Raymond James’ view that Viant is "an underappreciated asset that has carved out a defensible niche for itself" in the digital advertising market, particularly among mid-market advertisers with annual budgets between $50-500 million. With a robust current ratio of 2.71 and expected net income growth this year, the company appears well-positioned financially.
Raymond James highlighted Viant’s limited competition in its target market, noting these advertisers are "too small for The Trade Desk (NASDAQ:TTD) to chase" and there are "vanishingly few pure-play DSPs that have the resources to compete at this level."
The firm also pointed to Viant’s strong connected TV (CTV) mix, which Raymond James described as "near the high end of our coverage in terms of percentage of contribution ex-TAC," along with the company’s "demonstrated track record of innovation" through both internal investment and acquisitions like IRIS.TV and Lockr.
The new $20 price target is based on 17x Raymond James’ 2026 EV/EBITDA estimates, which positions Viant below larger peers like Roku (NASDAQ:ROKU), AppLovin (NASDAQ:APP), and The Trade Desk, but ahead of similarly-sized competitors, justified by what the firm sees as "above-comp group average revenue growth outlook and expanding margins."
In other recent news, Viant Technology Inc. reported a strong performance despite a challenging macroeconomic environment, with its Contribution ex-TAC surpassing expectations. However, the company’s adjusted EBITDA fell slightly below consensus due to integration costs from its acquisitions of IRIS.TV and Lockr. Viant’s second-quarter guidance showed robust figures, aligning with consensus at the midpoint for Contribution ex-TAC and falling within the EBITDA guidance range. In terms of analyst ratings, JMP maintained a Market Outperform rating with a $24.00 price target, highlighting Viant’s strategic acquisition of IRIS.TV to address challenges in connected TV advertising. Meanwhile, Scotiabank (TSX:BNS) adjusted Viant’s price target to $26.00 from $27.00 but kept an Outperform rating, noting the company’s notable performance. Additionally, Viant Technology’s stockholders recently approved the election of Max Valdes as a Class I director and the ratification of an independent auditor. The company also appointed Brett Wilson as a Class II director and member of the Audit Committee, further strengthening its board. Wilson’s extensive experience in adtech and AI aligns with Viant’s strategic vision, enhancing the company’s leadership team.
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