Needham Lowers Taboola (TBLA) Price Target to $5.00, Analysts Expect Strong Revenue Growth
Needham, a top investment firm, has revised its financial outlook for Taboola (NASDAQ:TBLA) shares, a leading discovery platform. The firm's analyst adjusted the 12-month price target to $5.00 from $6.00, maintaining a Buy rating on the stock.
The revision is due to a longer-than-expected integration timeline for Yahoo's demand side into Taboola's system. Despite this adjustment, Needham projects strong second-quarter performance for Taboola, with Gross Revenue expected to hit $428.3 million, a 29% increase year-over-year.
For the full fiscal year 2024, Needham slightly reduced its revenue expectations, now forecasting Net Revenue, ex TAC, to be $655 million, a 22% increase year-over-year. Adjusted EBITDA is projected to rise by 85% to $183 million, resulting in a 28% margin.
Taboola reported a strong Q1 performance for 2024, with revenue up 26% to $414 million, and adjusted EBITDA over 100% to $23.5 million. Free cash flow also more than doubled from the previous year.
In light of Needham's adjustments, InvestingPro Tips provide additional context for potential investors. Taboola's management's confidence in the company's future, sales growth prospects, and financial metrics are all factors to consider when evaluating the stock.
It's important to note that Taboola currently operates with a moderate level of debt, has a high EBITDA valuation multiple, and does not pay dividends to shareholders. However, with analysts anticipating net income growth and a positive outlook for the company, there may be opportunities for investors.
For a more in-depth analysis of Taboola's financial health and future prospects, explore available InvestingPro Tips. These insights can help inform investment decisions and provide valuable information on earnings revisions and profitability outlook.
Considering the current market environment and Taboola's performance, investors can use real-time data and expert analysis to make informed decisions. With a coupon code for discounted subscription plans, access a wealth of investment data to guide your financial strategies effectively.