On Monday, Evercore ISI initiated coverage on Ibotta Inc (NYSE:IBTA) stock, a digital promotions and performance marketing solutions provider, with an Outperform rating and a price target of $125.00. The firm's valuation is based on a 22x EV/EBITDA and 24x EV/FCF multiples of their 2025 EBITDA and FCF estimates, respectively.
Ibotta, which partners with over 2,400 consumer packaged goods (CPG) brands like Kraft-Heinz, Nestle, and Coca-Cola (NYSE:KO), offers digital promotions to consumers through its extensive network.
The company's technology facilitates the delivery of these promotions to an audience of around 200 million consumers via the Ibotta Performance Network (IPN), which includes major retail publishers such as Walmart (NYSE:WMT), Dollar Tree (NASDAQ:DLTR), and Kroger (NYSE:KR). Additionally, Ibotta reaches customers directly through its own app and web presence.
The majority of Ibotta's promotion offerings are concentrated in essential categories such as groceries. However, the company has started to branch out into general merchandise sectors, including toys, electronics, pet supplies, and home goods.
Evercore ISI's price target reflects a positive outlook on Ibotta's growth prospects and its ability to leverage its technology to deliver value to both CPG brands and consumers. With its expansion into new merchandise categories, Ibotta is expected to diversify its offerings and potentially increase its market presence.
The Outperform rating suggests that Evercore ISI anticipates Ibotta's stock to perform better than the average return of the stocks the firm covers, signaling confidence in the company's future financial performance and strategic initiatives.
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