In a report released today, Darren Aftahi from Roth MKM maintained a Buy rating on Direct Digital Holdings (DRCT – Research Report), with a price target of $19.00.
Darren Aftahi’s rating is based on a comprehensive analysis of Direct Digital Holdings, taking into account the company’s substantial collection of revenue and the steps being taken to address recent compliance issues. Despite the delay in filing their 10-K due to previous auditor disagreements over certain buy-side revenue validation, the firm has successfully collected approximately 99% of its revenue for the fiscal year 2023. This strong collection rate is an indicator of the underlying business strength and the company’s ability to generate cash.
Moreover, Aftahi’s confidence is also buoyed by the company’s proactive measures to regain compliance with Nasdaq listing regulations. Direct Digital Holdings is actively seeking a new auditor and plans to have one in place by the second quarter of 2024. Though this may result in further delays in financial reporting, the analyst believes that Direct Digital Holdings will make concerted efforts to get back on track by the second half of the year. The fact that the revenue question represents a minor portion of the company’s reported revenue for the previous year further supports the Buy rating, signaling a limited impact on the overall financial health of the company.
In another report released today, Benchmark Co. also maintained a Buy rating on the stock with a $23.00 price target.
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Direct Digital Holdings (DRCT) Company Description:
Direct Digital Holdings Inc is an end-to-end, full-service programmatic advertising platform primarily focused on providing advertising technology, data-driven campaign optimization and other solutions to underserved and less efficient markets on both the buy- and sell-side of the digital advertising ecosystem.
Read More on DRCT:
- Direct Digital Holdings Works to Resolve Nasdaq Compliance
- Direct Digital price target lowered to $23 from $30 at Benchmark
- DRCT Earnings: Direct Digital Holdings Tanks After Loss in Q4
- Direct Digital price target lowered to $19 from $27.50 at Roth MKM
- Direct Digital downgraded to Market Perform from Outperform at Noble Capital
