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Criteo SA (NASDAQ:CRTO)’s stock recently reached a 52-week low, with shares dipping to $23.23. This milestone reflects a challenging year for the company, as evidenced by a 42% decline in its stock price over the past year. Despite the decline, the company maintains a perfect Piotroski Score of 9, indicating strong financial fundamentals. The digital advertising firm has faced headwinds in the form of increased competition and evolving privacy regulations, which have impacted its financial performance and investor confidence. This recent low underscores the difficulties Criteo has encountered in maintaining its market position amid a rapidly changing industry landscape. According to InvestingPro analysis, the company appears undervalued at current levels, with analysts setting price targets significantly above the current trading price. The company maintains strong financial health with more cash than debt on its balance sheet, suggesting resilience despite market challenges.
In other recent news, Criteo reported first-quarter results that exceeded analyst expectations, posting adjusted earnings per share of $1.10, significantly surpassing the consensus estimate of $0.78. The company also reported revenue of $451 million, well above the anticipated $259.76 million. Despite this strong performance, Criteo faces challenges with two major retail media clients planning to scale back their partnerships, potentially impacting future growth. Analysts from Benchmark, JPMorgan, and Susquehanna have all revised their price targets for Criteo, citing macroeconomic uncertainties and strategic shifts by clients. Benchmark lowered its target to $46 while maintaining a Buy rating, JPMorgan reduced its target to $27 with a Neutral rating, and Susquehanna set a new target of $30, also maintaining a Neutral rating. Criteo’s first-quarter performance showed a 4% year-over-year increase in Contribution ex-TAC, a key profitability metric, and a 30% rise in adjusted EBITDA. The company continues to focus on expanding its Retail Media leadership and enhancing its platform despite macroeconomic challenges. Additionally, Criteo has formed a new global partnership with dentsu to integrate its Commerce Media Platform, aiming to enhance commerce and performance media campaigns.
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