DoubleVerify Holdings, Inc. (NYSE:DV) signaled a potential turnaround after posting third-quarter results that met expectations and outlined plans for steady double-digit growth into 2026.
Bank of America Securities analyst Omar Dessouky upgraded DoubleVerify Holdings to Buy from Neutral, while slashing the price forecast to $14 from $18.
Earnings Snapshot
Last week, DoubleVerify posted quarterly earnings of 6 cents per share, missing market estimates of 9 cents per share.
Also Read: These Analysts Lower Their Forecasts On DoubleVerify Holdings After Downbeat Q3 Results
The company’s quarterly sales came in at $188.621 million versus expectations of $190.262 million.
Analyst View
The analyst says that the company is the last remaining player in the media quality measurement space, giving it greater flexibility for R&D and innovation, which should help capture market share over the long term.
Traction in its repositioned product portfolio, coupled with several quarters of high-teens growth, could boost both our estimates and valuation, adds the analyst.
Dessouky expects the company’s product portfolio positioning to improve significantly in calendar year (CY) 2026 versus early CY25 and CY24.
Softer retail spending kept sequential growth flat, but no other red flags emerged this quarter, adds the analyst.
The analyst notes that DoubleVerify lowered CY25 revenue guidance by $4 million but raised EBITDA margins by 1%.
Estimates Revision
Dessouky says that while the company provided limited CY26 guidance, management expects at least 10% year-over-year (Y/Y) growth under similar macro conditions as the second half of CY25.
The analyst cuts the EPS estimate to 96 cents (from $1.02) for 2025, $1.14 (from $1.24) for 2026, and $1.28 (from $1.49) for 2027.
The analyst now expects 10% Y/Y revenue growth for CY26–CY28.
Price Action: DV shares were trading higher by 9.96% to $10.33 at last check Monday.
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