Cautious Outlook on Cardlytics: Hold Rating Amid Mixed Financial Signals and Adjusted Price Target

Evercore ISI analyst Mark Mahaney has maintained their neutral stance on CDLX stock, giving a Hold rating today.

Mark Mahaney has given his Hold rating due to a combination of factors, including Cardlytics’ recent financial performance and future outlook. The company showed better-than-expected results in Q4, with significant beats in key metrics such as Billings, Revenue, and Adjusted EBITDA. However, despite these positive results, management’s guidance for Q1 was less optimistic, indicating a slower-than-anticipated recovery in billings.
Moreover, while there are some positive signs, the path to achieving sustainably positive Adjusted EBITDA appears to be more prolonged and less straightforward than previously thought. The fundamentals in Q4 showed some weakening, with deceleration in both Billings and Revenue growth and a contraction in EBITDA margin. As a result, Mahaney has adjusted the price target downward, reflecting a more cautious outlook on the company’s near-term financial trajectory.

In another report released today, Craig-Hallum also maintained a Hold rating on the stock with a $3.00 price target.