Direct Digital price target lowered to $23 from $30 at Benchmark

Benchmark lowered the firm’s price target on Direct Digital to $23 from $30 and keeps a Buy rating on the shares after what the firm calls “the first truly disappointing quarter in the company’s relatively nascent history.” Direct Digital missed the revenue consensus by $25M and gave FY24 revenue guidance that was $60M below the Street at the mid-point, noted the analyst. The firm has reduced its revenue and EBITDA estimates to account for the reset, but adds that “history would suggest that upward revisions over the course of the year should eventually follow.”