UPDATE: Credit Suisse Starts Taboola (TBLA) at Outperform

Credit Suisse analyst Stephen Ju initiates coverage on Taboola (NASDAQ: TBLA) with a Outperform rating and a price target of $14.00.

The analyst comments "Taboola is on pace to have 500 employees in its R&D department by year-end 2021 (inclusive of 100 on the algorithm/data team). These investments are broken into two categories: 1) innovations that extend the capabilities of the current product offerings, such as investment in servers and expenses for data scientists, and 2) costs that are necessary to maintain core business, such as the ability to handle increasing loads of recommendations and code maintenance for existing products. We estimate Taboola is on pace to spend ~$132 million in R&D, or 28% of gross profit excluding traffic acquisition costs (TAC) (net revenue) in 2021, which is toward the higher end of its peer group range."

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 $8.84 yesterday.

You May Also Be Interested In

• BofA Securities Resumes American Eagle Outfitters (AEO) at Underperform
• UBS Reiterates Buy Rating on Hilton Worldwide (HLT)
• Cantor Fitzgerald Reiterates Overweight Rating on Merlin Labs (MRLN)