TechTarget goal to double revenue in 5 years ‘could be challenging,’ says UBS

After TechTarget announced an agreement with Informa plc to combine with Informa’s Tech business, UBS said the firm recognizes the potential for value creation from the transaction, especially in terms of the improved scale and ability to diversify into new verticals. However, the target to double revenue in five years “could be challenging,” says the analyst, who estimates the combined business has to be valued at about seven times 2024 revenue for TechTarget shareholders to “be made whole on the market closing price of $35.27,” assuming both their debt obligations and cash are rolled over into the combined entity. UBS has a Neutral rating and $31 price target on TechTarget shares.