Oppenheimer downgrades ‘show me story’ Taboola to Perform

Oppenheimer downgraded Taboola (TBLA) to Perform from Outperform and removed the firm’s prior price target after the company reported quarterly results and gave FY25 guidance. Management plans to smartly lean into display/banner, which is a “much more competitive” area, and the stock has become a “show me” story on maturation of Native advertising, the analyst tells investors. Taboola’s valuation compared to peers such as Perion Network (PERI), Criteo (CRTO) and PubMatic (PUBM) suggests limited upside potential without improved revenue or cost reductions, the analyst added.