Teads stock price target cut to $5 at JMP on post-merger challenges

Published 07/08/2025, 22:02
© Noam Galai, Outbrain PR

Investing.com - JMP Securities slashed its price target on Teads Holding (NASDAQ:TEAD) to $5.00 from $10.00 on Thursday, while maintaining a Market Outperform rating following the company’s second-quarter results and withdrawn guidance. The digital advertising company, currently trading at $1.95 with a market cap of $183.41 million, has seen its stock decline 63.4% over the past six months. InvestingPro analysis reveals 13 additional key insights about TEAD’s valuation and growth prospects.

Teads reported in-line results for the second quarter of 2025 but withdrew its full-year EBITDA guidance due to post-merger operational challenges that emerged in June. The primary issues included organizational problems that led to lower conversion rates from the sales pipeline and a slower-than-expected return to growth. Despite current challenges, InvestingPro data shows analysts expect 61% revenue growth this year, with the company projected to return to profitability.

The digital advertising company also faced softness across key verticals including consumer goods, automotive, and luxury sectors. A decline in page views, driven by the removal of underperforming supply partners, further contributed to the company’s challenges.

In response, Teads has implemented leadership changes in its U.S. and European operations and refined its go-to-market strategy. These efforts are already showing early signs of improvement across pipeline and conversion key performance indicators.

Despite the setbacks, management reaffirmed its confidence in achieving targeted cost synergies and remains committed to generating positive free cash flow in 2025. JMP Securities believes Teads remains well-positioned to offer advertisers an integrated brand-to-performance platform across the open web.

In other recent news, Teads Holding has reported its second-quarter earnings for 2025, revealing a notable earnings miss. The company posted an earnings per share (EPS) of -$0.10, which fell significantly short of the forecasted -$0.0107. Revenue for the quarter was reported at $343 million, slightly below the expected $352.22 million. Despite a 158% year-over-year increase in net revenue to $144 million, the results have led to investor concerns. Adjusted EBITDA reached $27 million, up from $7 million the previous year, though this figure was 12% below Needham’s estimate. Consequently, Needham adjusted its price target for Teads from $5.00 to $3.50, while maintaining a Hold rating. These developments come amidst a broader context of Teads’ financial performance and analyst assessments.

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