Evaluating Outbrain: Insights From 4 Financial Analysts

In the latest quarter, 4 analysts provided ratings for Outbrain OB, showcasing a mix of bullish and bearish perspectives.

The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.

Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $5.25, with a high estimate of $7.00 and a low estimate of $4.00. A 27.59% drop is evident in the current average compared to the previous average price target of $7.25.

Exploring Analyst Ratings: An In-Depth Overview

An in-depth analysis of recent analyst actions unveils how financial experts perceive Outbrain. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Outbrain. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Outbrain compared to the broader market.
• Price Targets: Analysts set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.

Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of Outbrain's market position. Stay informed and make well-informed decisions with our Ratings Table.

Stay up to date on Outbrain analyst ratings.

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Discovering Outbrain: A Closer Look

Outbrain Inc is a platform powering the open web that matches audiences with personalized content and ads, driving quality engagement. Its platform delivers ads to end-users that appear as links to articles, products, and videos on media partners' sites. It derives revenue from advertisers through user engagement with the ads that it places on media partners' web pages and mobile applications. The company has its geographic presence in Europe, the Middle East, and Africa followed by the USA and others.

Financial Insights: Outbrain

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

Negative Revenue Trend: Examining Outbrain's financials over 3 months reveals challenges. As of 31 December, 2023, the company experienced a decline of approximately -3.77% in revenue growth, reflecting a decrease in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Communication Services sector.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 7.51%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 8.45%, the company showcases effective utilization of equity capital.

Return on Assets (ROA): Outbrain's ROA excels beyond industry benchmarks, reaching 2.88%. This signifies efficient management of assets and strong financial health.

Debt Management: Outbrain's debt-to-equity ratio surpasses industry norms, standing at 0.59. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

Understanding the Relevance of Analyst Ratings

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in Benzinga Pro.

This article was generated by Benzinga's automated content engine and reviewed by an editor.