Noble says Direct Digital news may cause ‘anxiety,’ but resolution looks near

Noble Capital analyst Michael Kupinski notes that Direct Digital was not able to file its 10-K on time, and, subsequently, received a notification of non-compliance from Nasdaq, adding that the company also disclosed that Marcum is terminating its relationship with the company, citing its inability to verify the company’s impressions data. The firm, which expects the company to sign a top 10 US accounting firm within the 30-day Nasdaq window and thinks the audit should be able to ramp quickly, does not anticipate a significant restatement of 2023 financial results. The firm, which is maintaining a Market Perform rating on the shares “for now,” thinks the recent news “may cause some anxiety for investors,” but believes that “a resolution appears to be near.”