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Investing.com - H.C. Wainwright lowered its price target on Inuvo (NYSE:INUV) to $10.00 from $15.00 on Monday, while maintaining a Buy rating on the stock following the company’s third-quarter earnings report. The revised target still represents over 300% upside from the current price of $2.47, despite the stock having fallen 61.79% year-to-date according to InvestingPro data.
Inuvo reported third-quarter revenue of $22.6 million on November 6, falling short of H.C. Wainwright’s $26.4 million estimate and showing flat year-over-year performance. The company attributed the lower revenue to scaled-back advertising needed to comply with new requirements from its largest platform client.
This marks the second consecutive quarter of declining revenue for Inuvo since reaching a peak of $26.7 million in the first quarter of 2025. Gross margins remained somewhat depressed at just over 70%, which the firm attributed to shifts in product mix. InvestingPro data shows the company’s gross profit margin for the last twelve months stands at 77.96%, highlighting one of the company’s strengths despite recent challenges.
Despite the quarterly setback, H.C. Wainwright noted positive developments including the onboarding of 23 new clients during the quarter, many being higher-margin self-service clients. The company also reported its prospect pipeline has never been stronger.
The research firm now forecasts $99 million in 2025 revenue for Inuvo, representing 18.2% annual growth, and maintains that the stock remains undervalued at just 0.3 times 2026 Street revenue estimates, with the new price target suggesting approximately 300% upside from current levels. This view aligns with InvestingPro’s Fair Value assessment, which indicates the stock is currently undervalued. InvestingPro also identifies multiple factors affecting Inuvo, including its low revenue valuation multiple and recent price weakness. Investors seeking deeper insights can access the comprehensive Pro Research Report available for this and 1,400+ other US equities.
In other recent news, Inuvo Inc. reported a slight increase in revenue for the third quarter of 2025. The company posted a net loss of $1.7 million, which is an improvement from the $2 million net loss reported in the same quarter last year. Despite these financial developments, the company’s stock saw a decline following the announcement. Investors showed concern over the reduced gross profit and margin, even as the company highlighted positive developments in product innovation and client acquisition. These recent updates reflect ongoing challenges and achievements for Inuvo Inc. as it navigates the current market landscape.
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