Jake Fuller, an analyst from BTIG, has initiated a new Hold rating on Taboola.com (TBLA).
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Jake Fuller has given his Hold rating due to a combination of factors related to Taboola.com’s current market position and future prospects. The company is experiencing a shift in advertising dollars from traditional to digital channels, which could lead to growth in digital spending. However, the adoption of Taboola’s new Realize platform is still in its early stages, and the company is working on increasing brand awareness and customer adoption.
Fuller notes that while there is potential for mid-single-digit growth in the coming years, there is limited visibility into achieving double-digit growth. Additionally, there are concerns about the sustainability of the company’s take-rate amidst industry pricing pressures and macroeconomic factors affecting the advertising market. The potential growth from the Realize platform and AI developments are acknowledged, but significant financial impacts are not expected in the short term. As a result, the risk-reward balance appears even, leading to a Hold recommendation.
Based on the recent corporate insider activity of 94 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of TBLA in relation to earlier this year.