Cardlytics Sees Price Target Cut By 26% To Reflect Macro Headwinds
Needham analyst Kyle Peterson reiterated a Buy on Cardlytics, Inc (NASDAQ: CDLX) but lowered the price target to $14 from $19 to reflect the near-term headwinds.
Cardlytics' third-quarter revenue was $72.7 million, an increase of 12% year-over-year, which missed the consensus of $73.9 million.
Non-GAAP EPS loss of $(0.50) beat the consensus loss of $(0.57).
CDLX reported mixed 3Q22 results as billings came above consensus estimates, but revenue and EBITDA were a shade light as recessionary fears pressured ad budgets and consumer spending.
While these fears resulted in a soft 4Q22 guide, management outlined cost savings initiatives that allowed CDLX to maintain its targets of positive EBITDA in 2Q23 and positive FCF in 3Q23.
He believed profitability is crucial in today's stock market.
While he expects growth to remain under pressure until economic conditions improve, the shares' trading multiple set up an attractive risk-reward for small-cap growth investors with a long time horizon, he believes.
Wells Fargo analyst Jeff Cantwell maintained Cardlytics with an Underweight and cut the price target from $13 to $10.
Price Action: CDLX shares traded lower by 42.40% at $5.58 on the last check Wednesday.
Latest Ratings for CDLX
Date | Firm | Action | From | To |
|---|---|---|---|---|
Mar 2022 | Needham | Maintains | Buy | |
Aug 2021 | Needham | Maintains | Buy | |
Jun 2021 | Needham | Initiates Coverage On | Buy |
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