On Wednesday, Viant Technology Inc (NASDAQ:DSP) shares received a positive assessment from a Craig-Hallum analyst, leading to an increase in the company's stock price target. The new target is set at $18.00, up from the previous $14.00, while the firm maintained a Buy rating on the shares.
The analyst highlighted several growth drivers for Viant, including its proprietary ViantAI, the rise in Connected TV (CTV) usage, the growing adoption of household identification (HHID), and the strategic acquisition of IRIS.TV.
These elements are seen as key contributors to Viant's current momentum, which is reflected in its recent quarterly performance. Notably, the current results have yet to fully incorporate contributions from the company's AI capabilities or the IRIS.TV acquisition.
The industry's search for alternatives to dominant platforms, sometimes referred to as "walled gardens," and even to other major players like The Trade Desk (NASDAQ:TTD), appears to be benefiting Viant. The acquisition of IRIS.TV is particularly significant as it is expected to enhance Viant's ability to help marketers identify and target CTV inventory more effectively, not only across various streaming services but also in alignment with audience preferences for specific programs.
The analyst believes that the momentum in the CTV space should continue and that the IRIS.TV acquisition will provide sustainable benefits. This could potentially improve targeting of CTV inventory industry-wide, adding to Viant's growth trajectory.
Based on these factors, the firm decided to raise the price target for Viant Technology, reflecting confidence in the company's continued momentum and the expected positive impact of recent strategic moves.
In other recent news, Viant Technology Inc. has been making significant strides in the advertising industry. The company reported a robust second quarter for 2024, with a 15% increase in revenue year-over-year and a 23% growth in contribution excluding traffic acquisition costs.
This growth is attributed to the rebranding of its AI Suite to ViantAI and strong growth in Connected TV (CTV) and streaming audio, which have been significant contributors to record advertiser spending.
In addition, Canaccord Genuity has adjusted its outlook on Viant Technology, increasing the price target to $13 from the previous $11, while maintaining a Hold rating on the company's shares. This revision follows a series of investor meetings and a demonstration of Viant's new ViantAI solution, which automates much of the campaign planning and bidding process.
Looking ahead, Viant anticipates continued growth in the third quarter of 2024, with investments planned in engineering, product, and sales. Furthermore, the company expects low double-digit growth in overhead expenses in 2025. These are recent developments that highlight the company's commitment to innovation and growth in the rapidly evolving advertising landscape.
InvestingPro Insights
The recent analyst upgrade for Viant Technology Inc (NASDAQ:DSP) aligns with several key metrics and trends highlighted by InvestingPro. The company's stock has shown remarkable performance, with a 139.29% price total return over the past year and a 96.23% return year-to-date. This strong momentum is reflected in the InvestingPro Tip that notes DSP is "Trading near 52-week high," currently at 97.76% of its 52-week high.
The company's growth trajectory, as mentioned in the article, is supported by InvestingPro data showing a 20.25% revenue growth in the last twelve months as of Q2 2024. Additionally, the EBITDA growth of 131.1% over the same period indicates improving operational efficiency, which could be attributed to the strategic moves highlighted by the analyst.
While the company is currently not profitable over the last twelve months, an InvestingPro Tip suggests that "Analysts predict the company will be profitable this year." This aligns with the analyst's positive outlook on Viant's growth drivers, including ViantAI and the IRIS.TV acquisition.
For investors seeking more comprehensive insights, InvestingPro offers 13 additional tips for DSP, providing a deeper understanding of the company's financial health and market position.
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