Criteo Is Undervalued, Berenberg Bank Review
Analysts at Berenberg Bank provided their views on Criteo S.A. (NASDAQ:CRTO), mentioning that the company is well-positioned to weather the deprecation of third-party identifiers, including that which was announced by Google last week, given its evolving business mix and extensive first-party integrations.
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.
| Symbol | Price | %chg |
|---|---|---|
| MNCN.JK | 314 | 0.64 |
| 030000.KS | 18460 | -0.33 |
| 4324.T | 3945 | -2.13 |
| DMMX.JK | 127 | 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.
