Cardlytics Sees Price Target Cut By 26% To Reflect Macro Headwinds

  • Needham analyst Kyle Peterson reiterated a Buy on Cardlytics, Inc CDLX but lowered the price target to $14 from $19 to reflect the near-term headwinds.
  • Cardlytics' third-quarter revenue was $72.7 million, an increase of 12% year-over-year, which missed the consensus of $73.9 million.
  • Non-GAAP EPS loss of $(0.50) beat the consensus loss of $(0.57).
  • CDLX reported mixed 3Q22 results as billings came above consensus estimates, but revenue and EBITDA were a shade light as recessionary fears pressured ad budgets and consumer spending. 
  • While these fears resulted in a soft 4Q22 guide, management outlined cost savings initiatives that allowed CDLX to maintain its targets of positive EBITDA in 2Q23 and positive FCF in 3Q23. 
  • He believed profitability is crucial in today's stock market. 
  • While he expects growth to remain under pressure until economic conditions improve, the shares' trading multiple set up an attractive risk-reward for small-cap growth investors with a long time horizon, he believes. 
  • Wells Fargo analyst Jeff Cantwell maintained Cardlytics with an Underweight and cut the price target from $13 to $10.
  • Price Action: CDLX shares traded lower by 42.40% at $5.58 on the last check Wednesday.
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