Raymond James analyst Andrew Marok upgraded PubMatic Inc (NASDAQ: PUBM) from Market Perform to Outperform with a price target of $22.00.

The analyst comments: “We upgrade our rating on shares of PubMatic (PUBM) to Outperform from Market Perform with a $22 target price following a strong 2Q26, where the company delivered its promised return to growth one quarter ahead of schedule on the back of sustainable fundamental improvements. The narrative of PubMatic as a legacy, desktop-indexed platform is becoming increasingly outdated, with now 60% of revenue coming from higher-growth formats outside of the Web, including mobile app (+40% y/y, 25% of revenue), CTV (+13% y/y, 20% of revenue), and emerging businesses (+100% y/y, 15% of revenue). The digital ad industry’s shift to these higher-growth formats, the rise of agentic buying, and supply path optimization putting more power in the hands of the SSP are coalescing to drive tailwinds for PubMatic in conjunction with infrastructure and product investments the company has made over the past several quarters, leading us to take a more positive view on the outlook for PUBM shares. With the upward revisions to our estimates (which, in 2027, will represent the first full “clean” year without DSP-partner impacts since 2023), valuation is not challenging, which gives us confidence in our entry point.”

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Shares of PubMatic Inc closed at $13.48 yesterday.