Analyst Kyle Peterson of Needham reiterated a Buy rating on Cardlytics (CDLX – Research Report), with a price target of $15.00.
Kyle Peterson has given his Buy rating due to a combination of factors surrounding Cardlytics’ recent developments and financial outlook. The fourth quarter results of Cardlytics aligned with the anticipated range set earlier in the year, indicating stability in the company’s performance as advertiser spending increased. Furthermore, the outlook for the first quarter appears robust. The clincher, however, is Cardlytics’ new three-year deal to offer card-linked promotions with American Express, which stands as the second-largest credit card issuer in the United States. This agreement is seen as a milestone victory for Cardlytics and is expected to diversify their financial institution partnerships, enhance access to consumer spending data, and provide a strong impetus for sustained growth and improved profitability over the coming years.
Despite an anticipated significant increase in share price, Peterson considers the valuation of Cardlytics to remain reasonable. The expected opening share price translates to an enterprise value to forecasted FY25 EBITDA multiple of approximately 14.5 times, which is seen as modest by the analyst. As a result of these assessments, Peterson reasserts his Buy recommendation and has increased his price target to $15, signaling confidence in the company’s future performance and the investment opportunity it presents.
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Cardlytics (CDLX) Company Description:
Cardlytics, Inc. engages in the development of marketing solutions through its purchase intelligence platform. It operates through the Cardlytics Direct and Other Platform Solutions segments. The Cardlytics Direct segment represents its proprietary native bank advertising channel. The Other Platform Solutions segment includes solutions that enable marketers and marketing service providers to leverage the power of purchase intelligence outside the banking channel. The company was founded by Scott D. Grimes, Lynne M. Laube, and Hans Theisen on June 26, 2008 and is headquartered in Atlanta, GA.
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