PubMatic initiated with an Outperform at Wolfe Research

Wolfe Research initiated coverage of PubMatic with an Outperform rating and $25 price target. The firm sees opportunities for multiple expansion and upward estimate revisions driven by incremental benefits of Supply Path Optimization resulting in further consolidation, secular tailwinds, product innovation, and scale benefits with its O&O infrastructure. Wolfe also acknowledged that it’s a volatile stock with some potential near-term headwinds from one of the company’s top DSPs modifying its bidding algorithm.