On Thursday, Canaccord Genuity adjusted its outlook on shares of Viant Technology Inc (NASDAQ:DSP), increasing the firm's price target on the stock to $24.00, up from the previous $22.00.
The analyst maintained a Buy rating on the shares, citing several factors that could influence the company's growth and market position. According to InvestingPro data, Viant maintains strong financial health with a GOOD overall score, holds more cash than debt, and boasts a healthy current ratio of 2.77x.
The analyst noted the increasing share of programmatic advertising in non-digital mediums as a key driver. Programmatic advertising, which currently dominates over 90% of digital display ad spending, is expected to gain a larger share in other areas, such as video and digital out-of-home (OOH) advertising. This trend points to a growing market opportunity for Viant Technology, which has demonstrated strong execution with revenue growth of 23.7% in the last twelve months.
Viant's investment in artificial intelligence (AI) tools was highlighted as another reason for the raised target price. The company's efforts to democratize access to open web programmatic advertising through new AI tools, such as AI bidding, are seen as a potential source of incremental revenue. The early adoption trends of ViantAI, in particular, have been described as encouraging.
Moreover, the analyst pointed out that despite the stock's impressive year-to-date surge of over 180%, Viant's valuation remains reasonable when compared to its peers. Trading at approximately 3 times its forecasted FY25 revenue, the stock is considered to be at a discount relative to other ad tech companies and the broader digital advertising comparison group.
InvestingPro analysis reveals that Viant's market capitalization stands at $1.2 billion, with analysts projecting continued profitability this year. For deeper insights into Viant's valuation metrics and 12 additional ProTips, consider exploring InvestingPro's comprehensive research report.
The commentary provided by Canaccord Genuity reflects a positive outlook on Viant Technology's prospects, particularly in terms of its product suite expansion and its potential to attract new budget flows. The analyst's perspective seems to indicate confidence in the company's strategy and its position in the competitive ad tech landscape.
In other recent news, Viant Technology has been making significant strides in its business operations. The company's third-quarter results showed a robust 34% increase in revenue and a record $14.7 million in adjusted EBITDA. These developments were accompanied by the acquisition of IRIS.TV, a content identification platform expected to enhance its Connected TV targeting capabilities.
The integration of IRIS_ID and Viant Household ID is projected to improve ad targeting and performance, a move that has already demonstrated significant results with a 300% lift in ad recall and a 152% increase in sales for a campaign with Carl's Jr.
Furthermore, Viant Technology's new AI-driven advertising platform, ViantAI, has been well-received since its launch, garnering 500 early access sign-ups and anticipated to democratize programmatic advertising.
However, it is important to note that Viant anticipates a low-double-digit to low-teens growth in operating expenses for 2025 due to the acquisition adding overhead. Despite this, the company's recent performance and strategic moves have set a positive tone for its future.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.