Deep Dive Into Cardlytics Stock: Analyst Perspectives (6 Ratings)

Throughout the last three months, 6 analysts have evaluated Cardlytics CDLX, offering a diverse set of opinions from bullish to bearish.

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 provide deeper insights through their assessments of 12-month price targets, revealing an average target of $8.75, a high estimate of $14.00, and a low estimate of $3.50. A decline of 27.08% from the prior average price target is evident in the current average.

Analyzing Analyst Ratings: A Detailed Breakdown

The standing of Cardlytics among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Cardlytics. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Unveiling insights, analysts deliver qualitative insights into stock performance, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Cardlytics compared to the broader market.
• Price Targets: Understanding forecasts, analysts offer estimates for Cardlytics's future value. Examining the current and prior targets provides insight into analysts' changing expectations.

To gain a panoramic view of Cardlytics's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.

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Delving into Cardlytics's Background

Cardlytics Inc operates an advertising platform within financial institutions' digital channels, which include online, mobile, email, and various real-time notifications. The company operates through segments namely, Cardlytics platform in the U.S. and U.K., and the Bridg platform. The Cardlytics platform segment which generates key revenue, operates a proprietary native bank advertising channel that enables marketers to reach consumers through their trusted and frequently visited online and mobile banking channels. The Bridg platform generates revenue through the sale of subscriptions to the cloud-based customer-data platform and the delivery of professional services like implementation, onboarding, and technical support. The company receives maximum revenue from the United States.

Unraveling the Financial Story of Cardlytics

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

Revenue Challenges: Cardlytics's revenue growth over 3 months faced difficulties. As of 30 June, 2024, the company experienced a decline of approximately -9.21%. This indicates 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 below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of -6.11%, the company may need to address challenges in effective cost control.

Return on Equity (ROE): Cardlytics's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of -2.08%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): Cardlytics's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of -0.77%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: With a high debt-to-equity ratio of 1.06, Cardlytics faces challenges in effectively managing its debt levels, indicating potential financial strain.

The Significance of Analyst Ratings Explained

Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.

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.