Taboola reiterated at Market Outperform at JMP

JMP Securities Andrew Boone Market Outperform Taboola (NASDAQ: TBLA) price target of $5.00 (from $6.00).

The analyst said, “We expect in-line 4Q24 results from Taboola as it ramps advertiser demand across new supply offset by SEO headwinds across its eCommerce initiations but we expect Taboola to offer 2025 guidance materially below our and Street estimates as we lower our price target to $5 from $6. While we note there are significant positives across the business as premium inventory from Yahoo, Apple News and Stocks, and Microsoft ramp while Abby (gen AI-powered ad assistant) and Max Conversion (automated bidding) are a tailwind for demand as yield growth was positive last quarter, the inclusion of Yahoo to revenue in 2024 creates a difficult comp for 2025 as we now expect growth to slow materially and for Taboola to offer 2025 guidance below consensus. That said, with Taboola trading at ~6x our 2024 EBITDA, valuation keeps us positive.”

For an analyst ratings summary and ratings history on Taboola click here. For more ratings news on Taboola click here.

Shares of Taboola closed at $3.64 yesterday.

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