LiveRamp Holdings Inc. (RAMP) PT Raised to $53 at Benchmark
Benchmark analyst Mark Zgutowicz raised the price target on LiveRamp Holdings Inc. (NYSE: RAMP) to $53.00 (from $51.00) while maintaining a Buy rating.
The analyst commented, "RAMP delivered upside to F1Q subscription revenue and op. income expectations, while two anticipated account closures in the quarter including Oracle and a project-based customer contributed to a temporary ARR sequential decel. We estimate these two account closures detracted ~$6M-$10M ARR and importantly, management was adamant these are “isolated one-offs” and new scaled account signings in F2Q should bring ARR back to healthy growth and sequential growth back to its $1M+ customer count metric. We are most excited about RAMP’s land and expand opportunity in Commerce Media with related incremental monetization tangibles likely coming in the 2H of this FY (e.g. Dec.-Mar.). The company just launched a pilot for up to 40 customers (both new logos and existing) of its new pricing model in July which will transition the company from a generally high-fixed pricing model to a lower cost-based usage model. Two new logo wins have already been consummated including one of the world’s largest QSR providers. Management is confident the new easy entry pricing model will produce many more wins like these in the Commerce Media vector, which has been an otherwise major roadblock under its existing model."