Needham analyst Laura Martin maintained Taboola.com Ltd (NASDAQ:TBLA) with a Buy and lowered the price target from $6 to $5. The stock is trading lower on Friday.

Martin maintained her fiscal 2024 second-quarter estimates but lowered her estimates for the second half of fiscal 2024 and fiscal 2025 and her price target.

Martin lowered her revenue and earnings estimates for fiscal 2024, the second half of fiscal 2024, and 2025 because she now notes that Yahoo's demand side may take longer to integrate into Taboola's system than she previously thought.

Also Read: Taboola's Strategic Expansions And AI Investments Yield Solid Q1 Results: Details

Martin maintained her estimates for the fiscal 2024 second quarter: gross revenue of $428.3 million (up 29% year-on-year), net revenue, ex-TAC of $145.6 million (up 18% year-on-year), and adjusted EBITDA of $27.2 million (up 74% year-on-year), for a margin of 19%.

For fiscal 2024, Martin now estimates net revenue, ex-TAC, of $655 million (up 22% year over year, 2% below her previous estimate) and adjusted EBITDA of $183 million (up 85% year over year, 10% below her previous estimate), for a margin of 28%.

Owing to Martin's lower fiscal 2024 projections, she cut her fiscal 2025 revenue and EPS estimates.

Price Action: TBLA shares are trading lower by 4.18% at $3.33 at the last check Friday.

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