Truecaller stock rating downgraded by Deutsche Bank on ad revenue concerns

Published 22/07/2025, 08:44
Truecaller stock rating downgraded by Deutsche Bank on ad revenue concerns

Investing.com - Deutsche Bank (ETR:DBKGn) downgraded Truecaller AB (SS:TRUEB) from Buy to Hold and lowered its price target to SEK69.00 from SEK90.00.

The downgrade follows concerns about Truecaller’s advertising revenue performance, particularly on a per-user basis, despite the company facing significant foreign exchange headwinds in the second quarter of fiscal year 2025.

Deutsche Bank analyst John Karidis highlighted that on a constant currency basis, Truecaller estimated its advertising revenue per Daily Active User (DAU) declined by 5% year-over-year in Q2 FY25 and 6% year-over-year in the first half of FY25.

The analyst noted this performance "sits at odds with TRUE’s assertion that ’the underlying ads market was quite stable compared to last year,’" creating a contradiction in the company’s narrative.

Deutsche Bank expressed concern that this contradiction "likely undermines investors’ confidence in TRUE’s ad revenue prospects over time," contributing to the more cautious outlook on the stock.

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