Digital Turbine downgraded to Neutral at BofA on limited FY24 catalysts

As previously reported, BofA downgraded Digital Turbine to Neutral from Buy with a price target of $8, down from $12. A “flurry of disappointing results and missed guidance” since February have prompted more caution from investors, says the analyst, who now sees “insufficient catalysts” to drive a re-rating of the shares in FY24. While management has partially attributed the underperformance to transitory factors, the firm says its bull thesis predicated on the growth potential of new businesses will likely not materialize until FY25.