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On Tuesday, Raymond (NSE:RYMD) James analysts made adjustments to their coverage of adtech companies, including a downgrade for TechTarget , Inc. (NASDAQ:TTGT) to Market Perform from Outperform. The change in rating comes as TechTarget navigates through a merger process and faces a slow recovery in IT spending. According to InvestingPro data, TechTarget currently trades near its 52-week low of $16.59, with a concerning "Weak" overall financial health score.
The firm’s analysts have decided to maintain fourth-quarter estimates for most companies within their adtech coverage. However, TechTarget stands out as an exception due to the current challenges it faces. The analysts have cited the ongoing merger and sluggish IT spend recoveries as key reasons for the downgrade. TechTarget’s performance metrics underscore these challenges, with InvestingPro data showing a 50% stock decline over the past year and an expected 9% revenue decline for the current year.
In contrast to the downgrade of TechTarget, Raymond James analysts have increased the price target for Viant (NASDAQ:DSP) to $30 from $18. This new target is based on 30 times the firm’s 2026 EV/EBITDA estimates. Despite the boost, Viant’s price target reflects a discount compared to other high-growth adtech companies like The Trade Desk (NASDAQ:TTD) and AppLovin (NASDAQ:APP), which is attributed to Viant’s lower, albeit expanding, profit margins.
Additionally, the analysts have made adjustments to their 2025 estimates for Integral Ad Science (NASDAQ:IAS), shifting more of the annual contribution to the latter half of the year. This revision accounts for the growing contributions from Social and Moat throughout the year.
The updates from Raymond James provide a snapshot of the evolving adtech landscape, highlighting the varying performance and expectations among companies in the sector. While TechTarget faces a downgrade amid its merger process, Viant enjoys a raised price target, and Integral Ad Science sees a redistribution of its earnings potential over the coming year. For deeper insights into TechTarget’s valuation and growth prospects, InvestingPro subscribers can access comprehensive research reports with detailed financial analysis and 12 additional ProTips.
In other recent news, TechTarget Inc. experienced significant developments. The company has been given a neutral rating by JPMorgan, following the completion of its integration with Informa (LON:INF) Tech’s digital assets. Lake Street Capital Markets has also maintained a buy rating for TechTarget, despite reducing the stock’s price target from $36.00 to $24.00 due to potential challenges in the enterprise spending environment.
TechTarget recently underwent a change in its certifying accountant, with PwC US now serving as the company’s new auditor following the dismissal of Stowe & Degon, LLC and PwC UK. In another significant development, TechTarget’s shareholders have approved a merger with Informa PLC’s digital businesses, which is expected to bolster the company’s position in the B2B sector.
In the automotive sector, NIO and Xiaomi (OTC:XIACF) have surpassed Tesla (NASDAQ:TSLA) in the Software-Defined Vehicle (SDV) innovation ranking by Wards Intelligence. Companies like Xpeng (NYSE:XPEV) and Rivian (NASDAQ:RIVN) also rank high in the list, indicating a shift in the technological innovation landscape. These are recent developments that highlight the ongoing shifts in both the technology and automotive industries.
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