Outbrain initiated with a Neutral at B. Riley

B. Riley analyst Daniel Day initiated coverage of Outbrain (OB) with a Neutral rating and $5 price target. The firm views the core content recommendation business as a duopoly between the company and its closest competitor, Taboola (TBLA). Despite calling Outbrain “one of the cheapest stocks in the ad tech universe,” the firm believes beat-and-raise quarters will be necessary for the stock “to catch a consistent bid” and it sees “a fairly low likelihood of beat-and-raise quarters ahead,” the analyst tells investors.