LiveRamp (NYSE:RAMP) shares surged nearly 11% today after the data collaboration platform provided preliminary third-quarter numbers and announced an acquisition.
RAMP is acquiring data clean room software company Habu for nearly $200 million. The strategic M & A move is expected to bolster LiveRamp’s ability to provide data collaboration at scale while offering newer measurement and analytics use cases. Additionally, Habu’s publisher network of 200+ is expected to boost LiveRamp’s global expansion efforts. The deal is anticipated to close in the fourth quarter.
Further, LiveRamp expects revenue for the third quarter to rise by 10% year-over-year to $174 million, compared to the prior estimate of $165 million. Notably, operating income is now anticipated at $15 million, a substantial boost over the prior anticipated mark of $8 million. Analysts expect the company to post an EPS of $0.35 on revenue of $165.32 million for the quarter on February 7.
Is RAMP a Good Stock to Buy?
Overall, the Street has a Strong Buy consensus rating on LiveRamp, and the average RAMP price target of $43 points to a modest 6% potential upside in the stock. That’s on top of a nearly 70% rise in the company’s share price over the past year.
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