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Cautious Optimism: Fluent’s Strategic Shift Amidst Revenue Challenges and Growth Prospects

Cautious Optimism: Fluent’s Strategic Shift Amidst Revenue Challenges and Growth Prospects

Barrington analyst Patrick Sholl has maintained their neutral stance on FLNT stock, giving a Hold rating today.

Patrick Sholl has given his Hold rating due to a combination of factors influencing Fluent’s current financial performance and future prospects. The company’s fourth-quarter revenues have declined compared to the previous year, with challenges in the Owned and Operated (O&O) business impacting profitability. Despite these setbacks, Fluent anticipates double-digit revenue growth in 2025, driven by improvements in Media and EBITDA margins, particularly from the rapidly growing Commerce Media operations.
Fluent’s strategic pivot towards Commerce Media Solutions is a significant factor in Sholl’s rating. While this repositioning has shown promise with substantial revenue growth, the company still faces challenges in its traditional call center and O&O performance marketing sectors. Additionally, regulatory changes and financial negotiations have created uncertainties that Fluent is actively addressing. These mixed circumstances have led Sholl to maintain a Hold rating, reflecting cautious optimism about the company’s transition and future growth potential.

In another report released today, Canaccord Genuity also maintained a Hold rating on the stock with a $3.50 price target.

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