Integral Ad Science transferred with a Buy at Jefferies

Jefferies analyst James Heaney maintained Integral Ad Science (IAS) at Buy with an unchanged $12 price target as he took over lead coverage of the stock. In his view, the Street is "overly optimistic" on digital advertising growth in 2023 and 2024 and he views Trade Desk’s "best-in-class fundamentals" being offset by the stock’s "rich" valuation multiple. He lowered his FY23 revenue estimates across his coverage by 3%-7%, bringing his forecasts 5%-10% below consensus, Heaney noted. However, he would buy Integral Ad Science given its 50% valuation discount to closest peer DoubleVerify (DV) and what he sees as a "rich set of ’23 product catalysts."