PubMatic Inc (PUBM) PT Lowered to $50 but Jefferies Sees Share Gains on the Horizon
- Dow, S&P post worst week in months after hawkish Fed spooks investors
- Fed-fueled dollar rises as bears make for exits
- Adobe (ADBE) Edges Higher After Topping Q2 Estimates, Analysts Raise PT on 'Impressive' Performance
- Fed Statement Very Bullish for Tech Stocks, Focus on Cloud and Cyber Stocks - Wedbush
- You Fight Real Physical Inflation With Rate Hikes, Not Talk of Rate Hikes; Buy the Dip in Commodities, Gold Underpriced - Goldman Sachs
Get inside Wall Street with StreetInsider Premium. Claim your 1-week free trial here.
Jefferies analyst Brent Thill lowered the price target on PubMatic Inc (NASDAQ: PUBM) to $50.00 (from $62.00) after the company reported a 10% rev beat (+54% y/y rev growth) with EBITDA margin upside (+33% vs. street +21%). There were 5 key drivers to the upside:
1) a better-than-expected recovery in desktop display (+26% y/y rev growth)
2) 83% y/y rev growth in mobile & video (now 63% of rev)
3) accelerated pace of supply path optimization (SPO) deals (doubled share of spend coming from SPO vs. Q1'20)
4) 106% y/y growth in impressions served
5) recovery in COVID-19 impacted verticals like dining
The analyst reiterated a Buy rating, stating "We believe PUBM remains well positioned to gain share of the $300B+ digital ad market. Some key drivers of PUBM's share gains over the next several years include; 1) buyers consolidating ad spend around fewer SSPs (e.g. GroupM SPO deal in Q1), 2) ad verticals like travel and retail returning to pre-Pandemic levels in 2H21, 3) conversion to known identity solutions (e.g. Identity Hub, Audience Encore) driving more buyers to PUBM's platform, and 4) CTV, which is small (low single digit % of rev) but fast growing (+55% rev growth q/q), and could be a material driver by FY22."
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- UPDATE: Barclays Downgrades Arcturus Therapeutics (ARCT) to Underweight, 'High Risk of Covid-19 Vaccine Failure'
- MTN Group Limited (MTNJ:SJ) (MTNOY) PT Raised to ZAR100 at Barclays
- Japan Airlines Co., Ltd (9201:JP) (JAPSY) PT Raised to JPY3,700 at Morgan Stanley
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT Change
Related EntitiesJefferies & Co
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!