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Investing.com -- DoubleVerify (NYSE:DV) Holdings was downgraded to "Hold" by Loop Capital after a weak fourth-quarter result and disappointing outlook, citing a key customer’s suspension of activity and broader ad market challenges.
The firm cut its price target to $16, noting that the latest revenue shortfall follows a difficult 2024, during which several large customers struggled with company-specific issues. The downgrade comes after DoubleVerify’s stock lost nearly 40% in reaction to the earnings miss before recovering partially.
Loop Capital highlighted concerns over revenue concentration and questioned the strategic importance of the company’s solutions, as cost-cutting by major advertisers has impacted demand. Additionally, shifts in digital ad spending toward private marketplaces and social media have pressured the company’s core open-web business.
" DV’s premium valuation has been fully erased with the stock now trading at the median of adtech comparables. We think the stock will not regain its premium until the company can demonstrate its solutions are sustainably important to a growing number of customers," the note said. The firm is looking for evidence that DoubleVerify’s expansion into social media and media performance solutions can reaccelerate growth.
