On Tuesday, Deutsche Bank adjusted its price target for dotdigital group plc (DOTN:LN), a leading marketing automation platform, from GBP1.15 to GBP1.20, while retaining a Buy rating on the stock. The adjustment comes after dotdigital announced its financial performance for the fiscal year 2024, which aligned with market expectations.
The company reported a revenue growth of 14% to £79.0 million, slightly surpassing the consensus estimate of £78.8 million and Deutsche Bank's expectation of £78.3 million. This growth translates to a 9% increase on an organic constant currency basis. The reported organic growth stood at 7%, which was a slight exceedance of Deutsche Bank's forecast of 6%.
Dotdigital's cash position at the end of the period was robust, with £42.2 million on hand, outperforming both the market and Deutsche Bank's projections, which were set at £39.9 million and £40.4 million, respectively. The company's adjusted EBITDA and adjusted PBT matched the consensus figures, which were reported at £24.0 million for adjusted EBITDA and £16.4 million for adjusted PBT.
The update on dotdigital's financial health indicates a stable growth trajectory and a stronger-than-anticipated cash reserve. The company's ability to meet market expectations for key financial metrics reflects its solid performance in the highly competitive marketing automation industry. The new price target set by Deutsche Bank suggests confidence in the ongoing value proposition of dotdigital's shares in the market.
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