Evaluating Cardlytics: Insights From 3 Financial Analysts

Across the recent three months, 3 analysts have shared their insights on Cardlytics CDLX, expressing a variety of opinions spanning from bullish to bearish.

In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $4.17, along with a high estimate of $5.00 and a low estimate of $3.50. A decline of 24.18% from the prior average price target is evident in the current average.

Exploring Analyst Ratings: An In-Depth Overview

A clear picture of Cardlytics's perception among financial experts is painted with a thorough analysis 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 respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Cardlytics. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey 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.

Stay up to date on Cardlytics analyst ratings.

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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.

Cardlytics's Economic Impact: An Analysis

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

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 falls below industry averages, indicating challenges in achieving 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 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 is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of -0.77%, the company may face hurdles in achieving optimal financial returns.

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.

Analyst Ratings: What Are They?

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically 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.

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