The Analyst Verdict: Cardlytics In The Eyes Of 5 Experts

Cardlytics CDLX underwent analysis by 5 analysts in the last quarter, revealing a spectrum of viewpoints from bullish to bearish.

The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.

Analysts have recently evaluated Cardlytics and provided 12-month price targets. The average target is $4.9, accompanied by a high estimate of $7.00 and a low estimate of $3.50. A decline of 54.42% from the prior average price target is evident in the current average.

Interpreting Analyst Ratings: A Closer Look

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

Key Insights:

• Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Cardlytics. This insight gives a snapshot of analysts' perspectives on the current state of the company.
• Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Cardlytics compared to the broader market.
• Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of Cardlytics's stock. This comparison reveals trends in analysts' expectations over time.

Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of Cardlytics's market standing. Stay informed and make data-driven decisions with our Ratings Table.

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About Cardlytics

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.

Financial Milestones: Cardlytics's Journey

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

Negative Revenue Trend: Examining Cardlytics's financials over 3 months reveals challenges. As of 30 June, 2024, the company experienced a decline of approximately -9.21% in revenue growth, reflecting a decrease in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Communication Services sector.

Net Margin: Cardlytics's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of -6.11%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Cardlytics's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of -2.08%, the company may face hurdles in achieving optimal financial returns.

Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of -0.77%, the company may need to address challenges in generating satisfactory returns from its assets.

Debt Management: Cardlytics's debt-to-equity ratio is notably higher than the industry average. With a ratio of 1.06, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

The Basics of Analyst Ratings

Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.

Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.

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