Analyst John Blackledge of TD Cowen maintained a Buy rating on Taboola.com (TBLA – Research Report), with a price target of $6.00.
John Blackledge has given his Buy rating due to a combination of factors including Taboola.com’s expected financial performance and strategic initiatives. The company is anticipated to achieve a significant increase in ex-TAC gross profit by 28.8% year-over-year in the fourth quarter, driven by seasonal factors and the ongoing partnership with Yahoo. This growth is expected despite challenging year-over-year comparisons and revenue recognition impacts from Yahoo’s ad testing.
Additionally, Taboola.com is projected to reach over $200 million in EBITDA and more than $100 million in free cash flow for the fiscal year 2024, supported by progress with Yahoo and disciplined expense management. The company is also actively pursuing initiatives to enhance yield across its network, such as the introduction of Maximize Conversions and Taboola Select for premium advertisers, as well as onboarding Yahoo Omni clients. These factors collectively underpin Blackledge’s confidence in the company’s future performance, justifying the Buy rating.
Blackledge covers the Communication Services sector, focusing on stocks such as Meta Platforms, Alphabet Class C, and Pinterest. According to TipRanks, Blackledge has an average return of 12.4% and a 57.96% success rate on recommended stocks.