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Needham cuts comScore shares target amid 2023 revenue miss

EditorEmilio Ghigini
Published 07/03/2024, 11:05 pm
© Reuters.

On Thursday, Needham adjusted its financial outlook for comScore (NASDAQ:SCOR), reducing the price target to $25 from the previous $30 while maintaining a Buy rating on the stock. The firm's analysis noted that comScore experienced a year-over-year decline in revenues in three of the four quarters of 2023 and for the full year as well.

The company, however, has provided guidance for revenue growth of 2%-5% for the fiscal year 2024. This anticipated increase is attributed to the introduction and rapid client adoption of several new innovative products. Furthermore, the decline in sales of digital syndicated products, which are part of the old comScore product suite, seems to have stabilized.

Needham's report also highlights the potential revenue boost comScore could see during political years, such as FY24, estimating an additional $3 million, or a 1% increase in revenues. In light of these factors, Needham has revised its estimates and price target for the company.

Despite the lowered price target, the Buy rating suggests that Needham remains optimistic about comScore's potential, particularly considering the company's innovative product offerings and the expected moderation in the decline of its legacy product suite. The new price target reflects adjustments based on the company's recent performance and future projections.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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