TechTarget Faces Macro Challenges And Valuation Compression, Analyst Cuts Value Forecast – TechTarget (NASDAQ:TTGT)

Needham analyst Joshua Reilly reiterated a Purchase score on the shares of TechTarget Inc TTGT and lowered the worth forecast from $40.00 to $25.00.

TechTarget is predicted to align its FY25 steering with consensus estimates of $512 million in income (3.4% adjusted Y/Y development) and $98 million in adjusted EBITDA, mentioned the analyst.

Administration is prone to stay cautious as a consequence of potential gross sales and advertising downturns and macroeconomic headwinds in early 2025. Integration progress and $25 million in value synergies will likely be key subjects, the analyst famous.

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TechTarget is predicted to report an in-line fourth-quarter, although administration has not up to date steering to mirror one month of income from Informa Tech following the December 2nd merger.

Consensus income estimates of $78.5 million seem correct, with Informa Tech contributing about $20 million.

Buyers are doubtless centered on the timing of $25 million in value synergies and the progress of Informa Tech’s integration.

In addition they search readability on how enterprise segments will likely be structured. A brand new income segmentation could mix Model & Content material with Intent & Demand, whereas Intelligence & Advisory might be reported individually, aligning with the up to date investor presentation, opined the analyst.

TechTarget offers a singular B2B buy intent advertising platform, leveraging first-party, privacy-compliant knowledge from 150+ on-line properties.

Development drivers embody increasing its whole addressable market past advertising groups, elevated first-party knowledge from the BrightTALK acquisition for cross-selling, and a projected rebound in world IT spending.

The up to date value forecast relies on 17x EBITDA for the mixed entity utilizing consensus FY25 estimates.

Value Motion: TTGT shares traded decrease by 4.12% at $14.20 ultimately verify Tuesday.

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