DoubleVerify dives after FY forecast cuts, analyst downgrade
08/05/2024 12:09
** DoubleVerify's DV.N shares dive 40.2% premarket to
$18.25, a 2-yr low, after digital media analytics firm
forecasted slower growth in 2024
** Co late Tues forecast FY rev of $663-$675 mln vs prior
projection of $688-$704 mln, pointing to "uneven spending
patterns among select large advertisers”
** It also reduced FY EBITDA outlook to $199-$211 mln, down
from prior view of $205-$221 mln
** For Q1, co posted rev of $140.8 mln, up 15% yr/yr,
topping LSEG estimate of $138.2 mln
** Reacting to report, KeyBanc downgrades DV to "sector
weight" from "overweight"
** In addition, Barclays chops PT by $10 to $30, Canaccord
reduces PT by $8 to $40, RBC cuts PT by $9 to $40
** 18 of 21 brokerages covering DV rate stock "strong buy"
or "buy", rest have "hold", per LSEG, and median PT is $38
** Through Tues, shares lost 17% YTD
(Lance Tupper is a Reuters market analyst. The views expressed
are his own)
((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-646-279-6380))