Fluent Inc. (FLNT) PT Raised to $4.50 at Canaccord

Canaccord analyst Maria Ripps raised the price target on Fluent Inc. (NASDAQ: FLNT) to $4.50 (from $3.50) while maintaining a Hold rating.

The analyst commented: "Fluent reported solid Q2 results, highlighted by a return to reported revenue growth for the first time in 15 quarters and adj. EBITDA that came in more than 20% ahead of consensus. Aggregate revenue from continuing businesses increased 25% y/y, reflecting continued momentum in Commerce Media Solutions (CMS), which grew 90% y/y and reached a $125M annual revenue run rate (vs. $110M as of Q1). CMS as a percentage of total revenue expanded to 63% (vs. 58% in Q1), driving a 650 bp sequential improvement in gross margins. Management also announced the next phase of the CMS roadmap, with Fluent extending the business into the physical retail point of sale. Although the company does not expect a material revenue contribution in 2027, management highlighted a strong retail partner pipeline that is expected to help establish a redefined baseline heading into FY27. As an early proof point, Fluent announced a new partnership with CVS that came online in Q3, expanding the company’s presence into pharmacy and retail and adding to recent vertical expansion wins with Wyndham in travel and Squire in services. On guidance, management reiterated its expectation for low-double-digit consolidated revenue growth from continuing businesses in FY26, as well as continued adj. EBITDA improvement through 2H26, including positive adj. EBITDA in Q4. Shares of Fluent have rallied nearly 80% YTD as CMS has helped stabilize the overall business, and we are raising our price target to $4.50 (from $3.50) to reflect that progress. That said, we reiterate our HOLD rating and continue to look for greater evidence that the return to consolidated revenue growth can be sustained as CMS scales and newer verticals begin to contribute."

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