On Friday, Cardlytics (NASDAQ:CDLX) received an upgraded rating by a Craig-Hallum analyst from Hold to Buy, along with a significant increase in the price target to $18.00, up from the previous $10.00. The positive adjustment follows the company's recent performance and optimistic outlook for the year ahead.
The analyst highlighted that Cardlytics had an impressive quarter and provided guidance that indicates improving fundamentals over the course of the year. In 2023, the company undertook substantial efforts including the creation of a new Ad Decisioning Engine, which now boasts an 80% adoption rate, enhanced sales execution, and the resolution of a legal dispute.
These accomplishments have set the stage for 2024, which the analyst believes will be a year focused on execution. Cardlytics has already shown strong momentum with the return of Starbucks (NASDAQ:SBUX), a significant customer accounting for 10% of business, and the addition of a major new financial institution, American Express (NYSE:AXP), to its client roster.
Moreover, the deployment of a new suite of real-time data reporting tools is expected to address previous advertiser concerns and encourage increased spending on the Cardlytics platform.
The company anticipates an acceleration in billings in Q1, which is projected to lead to improved top- and bottom-line performance throughout the year. The analyst expressed increased confidence in the management team, market opportunities, and the company's fundamentals. The belief is that Cardlytics shares have the potential to continue rising as efforts are made to improve the capital structure.
The upgrade and raised price target reflect the firm's view that Cardlytics is well-positioned for growth, having cleared significant hurdles and now equipped with a broadened set of options to address its balance sheet concerns.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.