AdTheorent Holding (ADTH – Research Report), the Technology sector company, was revisited by a Wall Street analyst yesterday. Analyst Maria Ripps from Canaccord Genuity remains neutral on the stock and has a $5.00 price target.
Maria Ripps has given her Buy rating to AdTheorent Holding due to a combination of factors. She observed that AdTheorent’s Q3 results were solid, with revenue slightly exceeding the midpoint of the guidance range. The company’s top line growth accelerated over 20% quarter-over-quarter, boosted by new products like Direct Access and ADTH Health, which are showing strong momentum. AdTheorent’s new products also supported a robust sales pipeline, and the management’s interactions with brands and agencies were more positive compared to last year.
Furthermore, AdTheorent’s Q4 revenue and profitability guidance was in line with expectations, assuming no significant changes in the macro environment. The company, with a stabilizing advertising backdrop and a strong suite of new products gaining traction, expects to maintain its recent sales momentum into 2024. Despite this, Maria notes that the company will need to show significant top line growth acceleration to attract new investor interest. However, she is encouraged by the recent product execution, and with a stabilizing advertising environment and a valuation of less than 0.5x 2024 revenue, she believes that ADTH shares represent an attractive risk-reward at these levels.
Ripps covers the Technology sector, focusing on stocks such as Nerdy, Meta Platforms, and Alphabet Class A. According to TipRanks, Ripps has an average return of 19.0% and a 43.28% success rate on recommended stocks.
In another report released today, Benchmark Co. also maintained a Buy rating on the stock with a $6.00 price target.
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AdTheorent Holding (ADTH) Company Description:
MCAP Acquisition Corp is a blank check company.
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