DoubleVerify cut to Hold at Loop Capital on soft Q4 results and guidance

Loop Capital downgraded DoubleVerify (DV) to Hold from Buy with a $16 price target The stock fell sharply after the company reported a soft Q4 result with a “disappointing” outlook as its top customer suspended activity with the company because of cost-cutting to deal with commodity price escalation, the analyst tells investors in a research note. After a tough year in 2024, when a cohort of six large customers struggled through company-specific issues, DoubleVerify’s premium valuation has been fully erased, with the stock now trading at the median of ad-tech comparables, and the stock will not regain its premium until the company can demonstrate its solutions are sustainably important to a growing number of customers, the firm added.