B. Riley lowered the firm’s price target on Digital Turbine to $5 from $10 and keeps a Neutral rating on the shares. The analyst says a softer than anticipated fiscal Q3 revenue guidance seems to imply little-to-no typical quarterly seasonality in the app growth platform segment as well as ongoing softness in device shipments pressuring the on-device solutions segment. The most obvious catalyst for the stock is a positive decision by Meta or any other needle-moving app developer to license SingleTap, theoretically returning the company to meaningful sales growth following four consecutive quarters of double-digit revenue declines and expectations to continued declines in subsequent quarters amid what seems to many investors like a company-specific lack of execution, the analyst tells investors in a research note.
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