27% profits every 20 days?
This is what Nic Chahine averages with his options buys. Not selling covered calls or spreads... BUYING options. Most traders don't even have a winning percentage of 27% buying options. He has an 83% win rate. Here's how he does it.
Oppenheimer analyst Jason Helfstein maintained a Buy rating on Perion Network Ltd (NASDAQ:PERI) and set a price target of $45.
PERI is now Helfstein's favorite small-cap digital advertising stock, with shares -28% over the past six months vs. peers' flat and NASDAQ's +10%, despite outperforming on every financial metric last year.
PERI's Y/Y revenue growth outpaced peers by ~400bps in FY21 and ~1,400bps in FY22. Opco and Street estimates imply ~700bps of outperformance in FY23E, driven by PERI's mix of managed service DSP, search, CTV, and retail media capabilities.
PERI's search revenue has outpaced peers by an average of ~2,400bps since 1Q22.
Similarly, PERI's advertising revenue (ex-search) outgrew the digital ad industry ex-China by an average of ~2,100bps in FY21 - FY22. Meanwhile, CTV/retail media, the fastest-growing segments of digital advertising, represent a combined ~10% of 2Q revenue, up from 7% in 2Q22.
PERI expanded EBITDA margin by ~600bps in FY22 vs. peers contracting ~300bps, and FY23E estimates imply an expansion of ~200bps Y/Y vs. peers contracting ~700bps.
With revenue outperformance, EBITDA growth exceeded peers by ~8,300bps in FY22, and estimates indicate PERI will grow FY23E EBITDA ~4,200bps faster than peers.
Net cash is 27% of the market cap ($411 million cash as of 2Q) vs. peers at -1%. This has been driven by organic cash flow generation through prudent growth, allowing the company to pursue acquisitions and share buybacks.
PERI's stock -28% over the past six months vs. peers' flat & NASDAQ's +10% because the excitement around the Bing/ChatGPT partnership did not benefit search CPCs. Meanwhile, the stock has outperformed over the past two years, +45% vs. peers' -52% and NASDAQ's -8%.
Helfstein projects Q3 revenue of $185.31 million and EPS of $0.64.
Price Action: PERI shares traded higher by 3.90% at $30.10 on the last check Friday.
27% profits every 20 days?
This is what Nic Chahine averages with his options buys. Not selling covered calls or spreads... BUYING options. Most traders don't even have a winning percentage of 27% buying options. He has an 83% win rate. Here's how he does it.
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