Criteo (CRTO): Raising PT 26% After A Solid Quarter With Hidden Growth Accelerators - Berenberg
News and research before you hear about it on CNBC and others. Claim your 2-week free trial to StreetInsider Premium here.
Berenberg analyst, Sarah Simon, reiterated her Buy rating on shares of Criteo S.A. (NASDAQ: CRTO) after Q3 results were well ahead of expectations.
Despite market fears, Criteo delivered strong Q3 results, with revenue ex-traffic acquisition costs (TAC) of $177m (up 30% underlying) versus guidance of $170m-174m. Meanwhile, EBITDA came in at $54m versus consensus of $45m. The stronger-than-expected margin reflects the operating leverage inherent in Criteo’s core business of display-based retargeting.
While these were strong results, and we have increased our base-case estimates, Criteo has a number of other opportunities that have hitherto not been factored into our estimates, or those of consensus. These include China, Search and HookLogic. On our estimates, which we believe are conservative, these three opportunities could drive additional EBITDA of $184m by 2020.
The analyst increased core fair value by $1, and added in the present value of new opportunities, which amounts to $12/share. This takes the price target to $63 from $50.
Shares of Criteo S.A. closed at $42.64 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Mercury Computer (MRCY) PT Raised to $30 at Jefferies Following 2Q Report
- Needham & Company Reiterates Buy on Silicon Motion Technology (SIMO) Following 4Q Report
- Jefferies Downgrades NantKwest (NK) to Hold
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst PT Change, Earnings
Related EntitiesDefinitive Agreement
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!