On Friday, BMO Capital Markets raised its rating on Criteo S.A. (NASDAQ:CRTO) stock from Market Perform to Outperform, significantly increasing the price target to $45.00 from the previous $31.00. The upgrade is based on the company's successful execution and the potential for growth in its Retail Media and Performance Media segments.
Criteo, recognized as a small to mid-cap AdTech company, is anticipated to become the leading Commerce Media platform for the Open Web. The upgrade comes with an optimistic view of the company's future, citing several factors that may contribute to its growth.
These include gains in market share for both Performance Media and Retail Media, an encouraging outlook for adjusted EBITDA margins, the value of Criteo's unique dataset, and emerging opportunities within Social Media.
BMO Capital Markets has also revised upwards its earnings estimates for Criteo for the years 2024 and 2025. The firm's confidence in Criteo's strategic positioning and operational performance underpins the new price target and rating.
The analyst's statement emphasizes Criteo's strengthened prospects, highlighting the company's capacity to leverage its media segments and capitalize on the evolving digital advertising landscape. With its adjusted EBITDA margin outlook and unique dataset, Criteo is expected to secure a competitive advantage in the market.
The new price target of $45 reflects a significant increase in confidence from BMO Capital Markets in Criteo's potential for revenue growth and profitability. The upgrade and price target adjustment signal a positive forecast for the company's performance in the coming years.
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