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On Friday, Raymond (NSE:RYMD) James analyst Andrew Marok revised the price target for Viant Technology Inc (NASDAQ:DSP) stock, reducing it to $18.00 from the previous $27.00, while maintaining an Outperform rating. Currently trading at $13.26, the stock remains below the consensus analyst target range of $20-27, with InvestingPro analysis suggesting the stock is undervalued based on its Fair Value model. Marok's decision follows a series of meetings with Viant's management earlier in the week, where despite the general negative sentiment towards the advertising sector due to macroeconomic uncertainties, the discussions with Viant were positive. The company's financial health score of "GOOD" from InvestingPro supports this outlook, with metrics showing impressive revenue growth of nearly 30% in the last twelve months.
Marok highlighted several reasons to remain optimistic about Viant's prospects. The company has not observed a widespread impact from macroeconomic issues on its business. Additionally, even in the event of worsening conditions, Viant's significant position in Connected TV (CTV) advertising is expected to provide a substantial buffer due to the growing trend of investments in this area. The company's strong balance sheet, with more cash than debt and a healthy current ratio of 2.49, provides additional financial flexibility to weather potential challenges.
Viant's platform boasts unique features that continue to attract investment. The Household ID and ViantAI product suite, in particular, are gaining spend share. These elements are considered differentiators that could enable Viant to keep growing its market share as the advertising technology landscape evolves.
Despite the positive outlook on the company's execution and potential, the downward adjustment in the price target to $18 reflects a broader re-rating within the adtech industry. Marok's report indicates that while Viant is positioned well, external factors influencing the sector at large have necessitated a recalibration of the stock's value expectations.
In other recent news, Viant Technology Inc. reported its fourth-quarter 2024 earnings, surpassing Wall Street expectations with an earnings per share (EPS) of $0.15 compared to the forecasted $0.14. The company also achieved a significant revenue milestone of $90.05 million, far exceeding the anticipated $52.38 million. Despite these impressive financial results, Viant's stock experienced a decline in aftermarket trading. JMP Securities maintained a Market Outperform rating for Viant Technology, holding a steady price target of $24, driven by optimism surrounding the EO-3021 update expected in the first half of 2025. This update is anticipated to expand EO-3021's patient pool significantly, which has already shown promising initial response rates. Viant Technology's strategic moves include the launch of new AI products and acquisitions, such as Iris TV, to enhance its platform and maintain its position in the digital advertising space. The company also provided a revenue guidance of $65-68 million for Q1 2025, reflecting a 25% year-over-year increase. These developments underscore Viant Technology's ongoing efforts to innovate and capture market share in a competitive industry.
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