Teads (NASDAQ:TEAD) has seen its stock rating lowered from “hold” to “sell” by Wall Street Zen in a note issued to investors on October 7, 2023. This downgrade reflects a broader trend among analysts who are reassessing the company’s performance in light of recent financial results and market conditions.
Several other financial institutions have also weighed in on Teads’ stock. Citizens JMP reaffirmed a “market perform” rating on October 6, 2023, while Weiss Ratings maintained a “sell (d-)” rating on October 8, 2023. In a notable revision, JMP Securities reduced their price target for Teads from $10.00 to $5.00, designating a “market outperform” rating in their report dated August 8, 2023. Conversely, Needham & Company LLC slashed their target price from $3.50 to $1.00 but retained a “buy” rating. Additionally, Citigroup decreased their price target from $3.90 to $3.40, maintaining a “neutral” stance on the company as of July 29, 2023.
Analysts’ opinions on Teads are mixed, with two investment analysts issuing a buy rating, two assigning a hold rating, and one giving a sell rating. As a result, Teads holds an average rating of “hold” and an average target price of $3.13, according to data from MarketBeat.
Recent Earnings Report Highlights Challenges
Teads reported its quarterly earnings on November 6, 2023, revealing a loss of ($0.17) per share (EPS), which fell short of the consensus estimate of ($0.15) by ($0.02). The company generated revenue of $318.77 million during the quarter. Despite these figures, Teads reported a negative net margin of 7.53% and a negative return on equity of 8.59%, raising concerns about its operational efficiency and profitability.
Teads operates an online content recommendation platform globally. The company offers a suite of products under the Outbrain Engage brand, designed for media partners. This suite provides personalized feeds and data-driven recommendations aimed at maximizing user engagement. The Outbrain Engage solution also includes a web-based dashboard that allows clients to manage various aspects of their content delivery, including formats, sources, and categories of advertisements.
Investors are closely monitoring these developments as they navigate the uncertain landscape surrounding Teads and its stock performance.
