DoubleVerify Has Strong Growth Prospect As Advertisers Pursue Ad Spend Optimization: Analyst

Stephens & Co analyst Nicholas Zangler initiated coverage on DoubleVerify Holdings Inc DV at an Overweight rating with a price target of $47.

The analyst believes DV is witnessing strong client wins and volume growth on increased demand from brands and agencies for optimizing digital ad spending.  

Zangler expects a revenue CAGR of +20% over the next several years on growth in product launches, customer growth, and international expansion and an increase in global digital ad spending (+10%), the proliferation of CTV (CAGR: +16%) and retail media channels (+28% CAGR), among other factors.

Related: DoubleVerify Partners With TVision To Revolutionize CTV Attention Measurement

The analyst estimates revenues of $563.0 million and adjusted EBITDA of $175.7 million in FY23 and $698.1 million and $222.5 million, respectively, in FY24. 

Also Read: DoubleVerify's Social Media Revenues To Gain From META, TikTok Line Of Products, Analyst Boosts Price Target

Price Action: DV shares are trading higher by 2.31% at $39.79 on the last check Wednesday.