Direct Digital price target lowered to $4.75 from $5.25 at Roth MKM

Roth MKM lowered the firm’s price target on Direct Digital to $4.75 from $5.25 but keeps a Buy rating on the shares. A stronger sell-side mix and further publisher expansion led to some margin compression for Direct Digital in Q3, though the 34% topline growth remains “impressive”, the firm tells investors in a research note.