Bubble or no bubble, this is the best stock for AI exposure: analyst
Investing.com - Stifel has reiterated its Buy rating on Criteo S.A. (NASDAQ:CRTO) while maintaining its $42.00 price target, representing a potential 116% upside from the current price of $19.43. InvestingPro data shows Criteo is currently trading near its 52-week low and appears undervalued based on its Fair Value assessment.
The research firm highlighted Criteo’s potential in the emerging agentic commerce solutions market, noting three possible monetization paths: sponsored ads in chatbots, "native" ads in large language models (LLMs), and distributed discoverability leveraging Criteo’s presence in the data layer. Despite the stock’s 52.9% decline over the past year, Criteo maintains a strong financial health score of "GREAT" according to InvestingPro analysis.
Stifel believes LLMs will become an additional channel within multi-channel strategies rather than replacing existing ecosystems. The firm noted that LLM providers are unlikely to develop their own product recommendation solutions, citing current accuracy rates of only 65%.
According to Stifel, LLM providers will likely partner with companies like Criteo to power recommendation functions. Criteo is reportedly testing a pilot program with a major platform this month.
Stifel emphasized Criteo’s value proposition in providing real-time relevancy scores and SKU level updates at scale, capabilities that would benefit LLM-based commerce solutions.
In other recent news, Criteo reported impressive third-quarter 2025 earnings, significantly surpassing analysts’ expectations. The company’s adjusted earnings per share (EPS) reached $1.31, which was 40.86% higher than the forecasted $0.93. Additionally, Criteo’s revenue hit $470 million, outperforming the anticipated $281.33 million by 67.06%. DA Davidson reiterated its Buy rating and $38.00 price target on Criteo, citing these solid results and a constructive outlook for the fourth quarter. BMO Capital also maintained an Outperform rating, although it lowered its price target to $40.00, noting the company’s strong performance with Contribution ex-TAC and Adjusted EBITDA exceeding consensus estimates. Benchmark, while lowering its price target to $38.00 due to challenges in the retail media industry, still retained a Buy rating. Stifel continues to support Criteo with a Buy rating and a $42.00 price target, highlighting the company’s potential in the emerging agentic commerce trend. These developments provide various perspectives from analyst firms on Criteo’s recent performance and future potential.
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