Truist maintains Buy on DoubleVerify stock, price target at $21

On Wednesday, Truist Securities expressed a continued positive stance on DoubleVerify (NYSE:DV), with analyst Youssef Squali reiterating a Buy rating and a $21.00 price target. The affirmation follows a series of investor meetings with DoubleVerify’s management, including CEO Mark Zagorski, CFO Nicola Allais, and Head of Investor Relations Tejal Engman. According to InvestingPro data, the company maintains a "GOOD" overall financial health score, with particularly strong cash flow metrics and impressive gross margins of 82.3%.

Squali highlighted several reasons for the optimistic outlook. Firstly, he believes that the financial model for DoubleVerify has been made less risky, with a conservative approach to their fiscal year 2025 guidance. This conservative stance comes despite the company’s strong 15.3% revenue growth in the last twelve months. Additionally, the company now offers a more comprehensive suite of products that cover both Protection and Performance, featuring tools like ABS, Scibids, and Rockerbox.

The analyst noted that Scibids, in particular, has been performing above expectations, which may enhance DoubleVerify’s reach in the programmatic Total (EPA:TTEF) Addressable Market (TAM). Squali also addressed concerns about the future of Curation and the Open Web, considering them to be overstated.

Finally, Squali pointed out DoubleVerify’s valuation, which is near all-time lows, with the stock having declined 24% year-to-date, in contrast to the NASDAQ’s decrease of 1.5%. This valuation presents a context that Truist Securities finds favorable for maintaining their Buy rating on DoubleVerify shares. InvestingPro analysis suggests the stock is currently undervalued, with multiple analysts revising earnings estimates upward for the upcoming period. For deeper insights into DoubleVerify’s valuation and growth prospects, check out the comprehensive Pro Research Report, available exclusively on InvestingPro.

In other recent news, DoubleVerify Holdings Inc. reported a strong start to 2025, with first-quarter revenues reaching $165 million, a 17% increase year-over-year, surpassing analyst expectations of $153.09 million. Despite the revenue beat, the company’s earnings per share (EPS) fell short of projections, coming in at $0.01 against the expected $0.02. The company maintained its full-year guidance of 10% revenue growth amidst macroeconomic uncertainties. Stifel analysts maintained their Buy rating with a $17 price target, expressing optimism about DoubleVerify’s growth potential, particularly in the Activation segment and through recent acquisitions like Scibids and Rockerbox. Meanwhile, KeyBanc Capital Markets maintained a Sector Weight rating, noting the company’s solid start to the year and potential growth from new product cycles. DoubleVerify’s strategic focus on expanding product offerings and operational efficiency was highlighted as a key driver of its robust performance. The company continues to hold a strong cash position with $175 million on hand and zero debt, providing flexibility in a challenging economic environment.

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