Selected stock price target news of the day - May 8th, 2024

By: Matthew Otto

DoubleVerify’s Q1 Earnings Call: A Mix of Gains and Shortfalls

DoubleVerify’s first-quarter earnings call delivered mixed results, with some ups and downs in its financial performance. While DoubleVerify boasted a 15% year-over-year increase in revenue, hitting $141 million, however, its reported EPS of $0.04, a significant $0.08 below what analysts had predicted.

Digging into the revenue breakdown, the surge in social media revenue by 51% from the previous year was a bright spot. Yet, any optimism was tempered by the fact that adjusted EBITDA only managed to reach $38 million, translating to a 27% margin. And though net cash from operating activities saw an uptick, rising nearly 50% year-over-year to $32 million, it wasn’t enough to offset other concerns.

Adding to the financial woes, DoubleVerify faced an increase in its cost of revenue, mainly driven by rising cloud services expenses and the financial burdens of revenue-sharing agreements with programmatic partners. Despite these cost escalations, the company did manage to maintain a debt-free status, ending the quarter with $302 million in cash reserves.

Looking forward, DoubleVerify revised its full-year revenue guidance downward, now expecting a range of $663 million to $675 million, a figure notably lower than the market consensus of $696 million. This adjustment reflects an anticipated year-over-year growth of 17% at the midpoint. DoubleVerify also projected adjusted EBITDA between $199 million to $211 million for the same period, indicating a 31% margin at the midpoint.

Analysts Adjust Price Targets Following Earnings Call

Stifel analyst Mark Kelley maintained a Buy rating and lowered the price target from $37 to $25.
Truist Securities analyst Youssef Squali reiterated a Buy rating while lowering the price target from $39 to $32.
Needham analyst Laura Martin maintained a Buy rating and downgraded the price target from $45 to $33.
Baird analyst Vikram Kesavabhotla kept with an Outperform rating and decreased the price target from $42 to $34.
Keybanc analyst Justin Patterson downgraded from Overweight to Sector Weight.

Which Analyst has the best track record to show on DV?

Analyst Raimo Lenschow (BARCLAYS) currently has the highest performing score on DV with 9/13 (69.23%) price target fulfillment ratio. His price targets carry an average of $9.11 (29.49%) potential upside. DoubleVerify stock price reaches these price targets on average within 84 days.

FIS Delivers First Quarter Results, Exceeds Expectations, and Raises Full-Year Outlook

Fidelity National Information Services reported in the first quarter an EPS of $1.10, which is $0.14 better than the analyst estimate of $0.96. Revenue for the quarter also came in at $2.47 billion versus the consensus estimate of $2.44 billion. This performance was underpinned by a 200 basis points expansion in adjusted EBITDA margin, reflecting efficient cost optimization strategies particularly in the Banking segment, where the margin surged by 350 basis points.

Segment-wise, FIS demonstrated strength across Banking and Capital Markets divisions. In Banking, adjusted revenue growth accelerated to 2%, while Capital Markets witnessed a 6% growth in adjusted revenue. Recurring revenue continued its steady climb, with a 5% increase across the company’s offerings.

Looking ahead, FIS expressed confidence in meeting its full-year outlook, with a raised EPS guidance by $0.22 to a range of $4.88 to $4.98 versus the consensus of $4.71. Also looking forward to a revenue of $10.1 to 10.15 billion, compared to the consensus of $10.129 billion.

Analysts Upgrade Price Targets After Earnings Report

Keefe, Bruyette & Woods analyst Sanjay Sakhrani maintained an Outperform rating and raised the price target from $82 to $85.
Susquehanna analyst James Friedman maintained a Positive rating and increased the price target from $81 to $86.
Evercore ISI Group analyst David Togut reiterated an In-Line rating while upgrading the price target from $75 to $80.
RBC Capital analyst Daniel Perlin maintained an Outperform rating and raised the price target from $75 to $82.
Stephens & Co. analyst Charles Nabhan reiterated an Overweight rating and a $90 price target.
Baird analyst David Koning maintained a Neutral rating and increased the price target from $78 to $82.

Which Analyst has the best track record to show on FIS?

Analyst Andrew Jeffrey (TRUIST) currently has the highest performing score on FIS with 9/14 (64.29%) price target fulfillment ratio. His price targets carry an average of $-1.98 (-2.96%) potential downside. Fidelity National Information Services stock price reaches these price targets on average within 112 days.

Palantir Reports Q1 2024 Financial Results with Revenue Growth and Profitability

Palantir Technologies reported financial results for the first quarter of 2024, with an EPS of $0.08, in-line with the analyst estimate. Also posting a revenue of $634 million, better than the consensus estimate of $615.3 million, marking a 21% increase year-over-year. Palantir’s GAAP net income for the quarter reached a record $106 million, representing a 17% margin, and GAAP operating income stood at $81 million. Also reported an adjusted operating margin expanded to 36%.

Palantir’s US commercial revenue soared by 68% year-over-year to $150 million, driven by the increasing adoption of its AI platform and customer acquisitions. In addition, Palantir’s US government revenue increased by 12% year-over-year to $257 million. Palantir’s total remaining deal value grew to $4.1 billion, reflecting a 22% increase year-over-year, while adjusted free-cash flow reached $149 million for the quarter.

Analysts Offer Varied Perspectives with Updated Price Targets

HSBC analyst Stephen Bersey maintained a Hold and raised the price target from $22 to $23.
Citigroup analyst Tyler Radke maintained a Neutral yet increased the price target from $23 to $25.
RBC Capital analyst Rishi Jaluria reiterated an Underperform and upgraded the price target from $5 to $9.
DA Davidson analyst Gil Luria kept a Neutral and raised the price target from $19 to $24.
Deutsche Bank analyst Brad Zelnick maintained a Sell and raised the price target from $18 to $20.

Which Analyst has the best track record to show on PLTR?

Analyst Matthew Broome (MIZUHO) currently has the highest performing score on PLTR with 5/6 (83.33%) price target fulfillment ratio. His price targets carry an average of $-5.46 (-20.63%) potential downside. Palantir Technologies stock price reaches these price targets on average within 26 days.