Criteo S.A. (NASDAQ:CRTO) Thrives in Competitive Digital Marketing Sector
- Criteo S.A. (NASDAQ:CRTO) showcases resilience with a monthly gain of approximately 9.19% despite a slight dip in the past 10 days.
- The company's target price of $48.25 reflects strong confidence from analysts and investors, supported by a growth potential of 172.89% and a perfect Piotroski score of 9.
- Criteo's success is attributed to its innovative technology-driven advertising solutions, positioning it well in the rapidly growing digital marketing industry.
Criteo S.A. (NASDAQ:CRTO) is a global technology company specializing in digital marketing and advertising. It provides a platform for companies to engage and convert online audiences more effectively. This sector is highly competitive, with major players like Google and Facebook dominating the market. However, Criteo's unique approach and technology have carved out a niche for itself, allowing it to thrive despite the stiff competition.
The company's recent performance, with a monthly gain of approximately 9.19%, showcases its resilience and potential for growth. Although there was a slight dip of about 2.89% in the past 10 days, the overall trend remains positive. This is a testament to Criteo's strong market position and its ability to navigate the challenges within the digital advertising space.
The target price of $48.25 for CRTO reflects the confidence analysts and investors have in the company's future. This optimism is backed by Criteo's ability to achieve a local minimum recently, indicating that its stock price could be at a turning point for a significant rebound. Coupled with its impressive growth potential of 172.89% and a perfect Piotroski score of 9, Criteo stands out as a financially healthy company with robust profitability, leverage, liquidity, and operating efficiency.
Criteo's focus on technology-driven advertising solutions is a key factor in its success. The digital marketing industry is growing rapidly, and companies that offer innovative and effective solutions are well-positioned to benefit. Criteo's high Piotroski score further underscores its financial stability and operational efficiency, making it an attractive investment option for those looking to capitalize on the growth of the digital advertising sector.
| Symbol | Price | %chg |
|---|---|---|
| MNCN.JK | 286 | 0 |
| 030000.KS | 18770 | 0 |
| FORU.JK | 3790 | 0 |
| DMMX.JK | 228 | 0 |
Tougher Times For Criteo, Estimates Reduced
Analysts at Berenberg Bank provided their views on Criteo S.A. (NASDAQ:CRTO), reducing their price target to $58.50 from $66 given current tough times for the company, while their buy rating was maintained.
The analysts reduced their revenue estimates due to the company’s withdrawal from the Russian market, which accounts for less than 2% of contribution excluding traffic acquisition costs (CexTAC), and the evidence of softer e-commerce spend, which the analysts believe will impact e-commerce advertising.
The analysts now forecast constant FX growth in fiscal 2022 of 8.8%, below the guidance of 10-12% and their previous forecast of 11.7%. The analysts mentioned that the company remains solidly profitable with robust growth potential even after those challenges.
Criteo Is Undervalued, Berenberg Bank Review
According to the analysts, valuation completely fails to reflect this, and they reiterate their Buy rating and a price target of $66 (current stock price is $31.06).
While guidance for 2022 non-GAAP operating expense growth of 16% was higher than anticipated, this should support further top-line acceleration in 2023, according to analysts. Even with this sizeable reinvestment in the business, the analysts believe the company will deliver margins of more than 32%. Given the market will give the company far more credit for top-line expansion than for profitability, the analysts think investing for growth is the right thing to do.
