Taboola.com Ltd (NASDAQ:TBLA) was hit with a price target downgrade from analysts at Oppenheimer as the company turns its focus from cutting costs to expanding its infrastructure following its partnership deal with Yahoo.
The firm lowered its target for the native advertising platform to $4 from $4.50 but reiterated an ‘Outperform’ rating. That target assumes 6.6x 2024 EBITDA, a 3% premium to relative to its peers trading at 6.4x, with full Yahoo dilution.
“As a leader in contextual targeting, we believe Taboola is well positioned to grow its share of the $78 billion-plus Open Web market, as we anticipate the future removal of third-party cookies will drive contextual adoption,” analysts said.
Shares of Taboola fell 6% to $3.10 Monday afternoon.
In terms of estimates, Oppenheimer analysts lowered fiscal 2023 EBITDA by 51% on higher costs and investments but raised fiscal 2024 and 2025 EBITDA by 12% and 21%, respectively, as Yahoo integration ramps up.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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