Fluent Inc.: Hold Rating Maintained Amidst Financial Uncertainty and Emerging Growth Segments

Canaccord Genuity analyst Maria Ripps maintained a Hold rating on Fluent (FLNT – Research Report) yesterday and set a price target of $4.50.

Maria Ripps’s rating is based on Fluent’s mixed financial performance and market conditions that present both challenges and opportunities for the company. Fluent’s first-quarter results showed a significant year-over-year revenue decline due to the impact of a Federal Trade Commission (FTC) settlement and aggressive non-compliant marketing practices by competitors. These factors, combined with macroeconomic headwinds and clients’ focus on return on ad spend (ROAS), have put pressure on Fluent’s Media & Entertainment and Staffing & Recruitment verticals. Despite these challenges, the company’s newer business segments like adflow and Call Solutions are showing promising growth, which could be a positive sign for the future.
Ripps maintains a Hold rating, as Fluent is expected to face a sequential revenue decline in the second quarter but aims to achieve breakeven adjusted EBITDA. There is a possibility of improvement in the second half of 2024 when the company anticipates a return to year-over-year revenue growth. The outlook for Fluent is cautiously optimistic, with the expectation that regulatory enforcement of compliance standards will eventually level the playing field and benefit Fluent’s competitive position. However, due to the current operational headwinds and lack of visibility into sustainable revenue growth, Ripps advises investors to wait for clearer signs of the company’s growth trajectory and market dynamics before changing the investment rating.

Based on the recent corporate insider activity of 53 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of FLNT in relation to earlier this year.

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Fluent (FLNT) Company Description:

Fluent, Inc. provides scalable, data-driven performance marketing and customer acquisition services. It creates marketing programs. The company was founded in 2005 and is headquartered in New York, NY.