PubMatic falls after dour quarterly forecast drives PT cuts

PubMatic

01/03/2023 14:08

** Ad tech firm PubMatic Inc's shares  PUBM.O  fall 6.3% to
$14.20 premarket
    ** At least five brokerages cut PT on the stock after it
forecast quarterly revenue that missed estimates
    ** "Q1 guidance and 1H sentiment moved lower for both
revenue and adj-EBITDA, reflecting a more cautious tone on
macro," says RBC Capital Markets; cuts PT to $20 from $24
    ** Co is "adding more publisher partners to shift mix away
from display, including ROKU and Kroger... However, given fixed
costs, we're reducing FY23E EBITDA by 24%, with similar declines
in FY24E," says Oppenheimer; cuts PT to $17 From $22, maintains
"outperform"
    ** PUBM sees Q1 revenue between $50 mln and $52 mln vs
analysts' expectations of $54.9 mln - Refinitiv data 
    ** Q4 revenue of $74.3 mln also comes in below est. of $76.7
mln
    ** Of the 10 analysts covering the stock, seven rate "buy"
or higher, three rate "hold"; median PT $17

 (Reporting by Yuvraj Malik)
 ((yuvraj.malik@thomsonreuters.com))