The Analyst Verdict: Cardlytics In The Eyes Of 5 Experts

5 analysts have expressed a variety of opinions on Cardlytics CDLX over the past quarter, offering a diverse set of opinions from bullish to bearish.

The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.

Insights from analysts' 12-month price targets are revealed, presenting an average target of $16.0, a high estimate of $18.00, and a low estimate of $12.00. Surpassing the previous average price target of $12.50, the current average has increased by 28.0%.

Analyzing Analyst Ratings: A Detailed Breakdown

The analysis of recent analyst actions sheds light on the perception of Cardlytics by financial experts. The following summary presents 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: Analysts unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into expectations for the relative performance of Cardlytics compared to the broader market.
• Price Targets: Analysts navigate through adjustments in price targets, providing estimates for Cardlytics's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.

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

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Unveiling the Story Behind 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.

A Deep Dive into Cardlytics's Financials

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.

Positive Revenue Trend: Examining Cardlytics's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 8.08% as of 31 December, 2023, showcasing a substantial increase in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Communication Services sector.

Net Margin: Cardlytics's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of -113.09%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Cardlytics's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of -56.0%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): Cardlytics's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of -16.68%, the company may encounter challenges in delivering satisfactory returns from its assets.

Debt Management: Cardlytics's debt-to-equity ratio surpasses industry norms, standing at 1.97. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

Analyst Ratings: What Are They?

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 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.

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