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On Wednesday, Perion Network Ltd. (NASDAQ:PERI) shares received a boost from Roth/MKM, as the firm upgraded the stock from Neutral to Buy and increased the price target to $14.00, up from the previous target of $9.00. The upgrade reflects a positive outlook on the company’s future performance. According to InvestingPro data, the stock has already shown strong momentum with a 17.7% gain in the past week, while trading at an attractive price-to-book ratio of 0.68.
Analysts at Roth/MKM expressed confidence in Perion Network’s business trajectory, anticipating a return to year-over-year growth and an acceleration in growth coupled with margin expansion. The optimism is partly due to the recent acquisition of Greenbids, which significantly expands Perion Network’s total addressable market (TAM). The company maintains a strong financial position with a current ratio of 3.97, indicating robust liquidity to support its growth initiatives.
In addition to the upgrade, Perion Network has stepped up its efforts to buy back shares, with an expanded authorization now standing at $125 million. This move underscores the company’s commitment to enhancing shareholder value and its belief in the company’s prospects.
The firm’s analysts recommend investors to reconsider Perion Network’s stock, especially as they predict a positive growth inflection estimated to occur in the third quarter of 2025. The strategic moves and anticipated growth have positioned Perion Network favorably in the eyes of Roth/MKM, leading to the raised outlook and price target.
In other recent news, Perion Network Ltd. has announced preliminary financial results for the first quarter of 2025, anticipating revenues of approximately $88 million and an adjusted EBITDA of around $1.5 million. The company has also implemented a shareholder rights plan to prevent undervalued acquisitions, aiming to protect shareholder value and ensure strategic decision-making. Perion’s fourth-quarter 2024 earnings revealed an earnings per share (EPS) of $0.33, exceeding expectations, although the company experienced a 33% decline in full-year revenue to $498.3 million. Despite this, Perion has set a 2025 revenue guidance between $400 million and $420 million, with adjusted EBITDA expected to range from $40 million to $42 million. The launch of the PerionOne platform is a key strategic move, aiming to unify advertising technologies and improve efficiency. Additionally, Perion has reported a 14% increase in user engagement following the deployment of its AI chatbot for Visit Savannah, highlighting its ongoing innovation in digital advertising. Analyst firms such as Raymond (NSE:RYMD) James and Oppenheimer have been closely monitoring these developments, with discussions around the impact of the PerionOne reorganization and the company’s strategic focus on high-margin products.
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