Taboola downgraded to Neutral from Buy at B. Riley

B. Riley analyst Zach Cummins downgraded Taboola (TBLA) to Neutral from Buy with a price target of $4, down from $5. The company’s solid Q4 results were overshadowed by the initial fiscal 2025 ex-traffic acquisition cost gross profit and adjusted EBITDA guidance, which were well below expectations, the analyst tells investors in a research note. The firm says the weaker demand for native advertising prompted a recalibrated strategy, including the launch of a new platform that will help expand the company’s performance advertising capabilities beyond bottom-of-the-article placements. Riley believes that with fiscal 2025 now being a reset year, it is best to move to the sidelines in the near term.