On Thursday, Jefferies maintained a Hold rating on comScore (NASDAQ:SCOR) while increasing the price target from $13.00 to $17.00. This adjustment follows the company's financial performance which indicated a shortfall in revenue due to weaker Custom Solutions work.
Despite this, Jefferies has raised its adjusted earnings per share (EPS) estimate for 2024 by $0.20 to $5.60.
The firm's analysis suggests that comScore's revenue did not meet expectations, which has been attributed to underperformance in the segment of Custom Solutions. Additionally, the 2024 revenue guidance provided by comScore was considered somewhat conservative, projecting low to mid-single-digit growth. The challenging market conditions are expected to persist in the first half of the year, with the anticipation of growth materializing more significantly in the latter half.
comScore's adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) margins are forecasted to remain stable or potentially increase by up to 300 basis points, aiming for a range between 12% and 15%. This projection is part of the financial outlook for the company as it navigates through the anticipated difficult market environment in the upcoming periods.
The revision in the price target to $17.00 reflects the updated adjusted EPS estimate, which is now set at $5.60 for the year 2024. Despite the increase in the price target and EPS estimate, Jefferies' stance on comScore remains cautious with a reiterated Hold rating, signaling a neutral perspective on the stock's potential in the near term.
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