B. Riley downgrades Digital Turbine on app economy softness

B. Riley analyst Daniel Day downgraded Digital Turbine to Neutral from Buy with a price target of $16, down from $20. The analyst sees "headwinds ahead" for Digital Turbine with ongoing softness in the app economy, especially within the company’s key categories of mobile gaming and social media. These present downside risks to consensus estimates through fiscal 2024, the analyst tells investors in a research note. The firm’s says that while its longer-term outlook on Digital Turbine’s growth drivers of SingleTap, the content media product transition, and alternative app store opportunities are largely unchanged, these are 2024 and beyond stories. It is increasingly unlikely the stock will get credit from investors for the potential future revenue growth from these product developments over the next 6-12 months, the firm contends.