Benchmark Reiterates Buy Rating on Criteo S.A. (CRTO)

Benchmark analyst Mark Zgutowicz reiterated a Buy rating and $42.00 price target on Criteo S.A. (NASDAQ: CRTO).

The analyst commented, "CRTO’s 2Q print and outlook overall was certainly better than feared with a modest raise to ‘25E revenue and Adj. EBITDA. Relative strength came from Performance Media with Retargeting rebounding to MSD growth and Commerce Audiences holding steady in the mid-teens aided by offsite gains. Retail Media CexT growth of ~11% y/y was disappointing, decelerating nearly 800bps q/q (2-year stack) and absent its largest client losses that will begin to hit the P&L predominantly in 4Q. And while RM take rate is seasonally weak in 2Q, it was notably weaker vs. prior periods, -250 bps q/q vs. -180 bps in 2Q24, which we attribute partially to growing agency mix. On a positive front, management highlighted strong demand for its auction-based display (launched in June), with roughly 16 retailers live today and expected to double in the next few weeks. While we do not expect newer auction-based display and onsite video products to necessarily lift retail media take in the near-term, we do expect the products to substantiate higher market rates for Criteo’s stack overall. Our estimate revisions detail is below. We maintain our Buy rating and $42 DCF-based PT."

For an analyst ratings summary and ratings history on Criteo S.A. click here. For more ratings news on Criteo S.A. click here.

Shares of Criteo S.A. closed at $22.97 yesterday.

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