DoubleVerify initiated with bullish view at Morgan Stanley, here’s why

Morgan Stanley initiated coverage of DoubleVerify with an Overweight rating and $40 price target. The firm estimates that advertisers will spend about $450B on online ads globally, ex-China, in 2023, and contends “tens of billions of which will go to waste on ineffective ads that are not brand safe or even seen by consumers.” DoubleVerify’s verification and measurement offering “solves a key industry challenge by identifying ineffective ads,” says the analyst, who sees its leading product offering and innovation pipeline driving 22% sales and 23% EBITDA compound annual growth rates through 2027.