Ibotta downgraded to Neutral from Buy at BofA

BofA downgraded Ibotta (IBTA) to Neutral from Buy with a price target of $40, down from $90, following the company’s “much lower than expected” Q4 revenue and Q1 guidance. What the firm calls “most concerning” was a large miss in the third party publisher segment, which is Ibotta’s “growth engine” and until Q4 had “performed solidly above the Street” consensus, the analyst tells investors. While two large consumer packaged goods clients have moved out of the test phase, most Ibotta clients are “taking a wait and see approach and not deploying marketing dollars to new/untested channels,” the analyst added.