TechTarget Faces Macro Challenges And Valuation Compression, Analyst Cuts Price Forecast

Group 1 - TechTarget Inc is rated as a Buy by Needham analyst Joshua Reilly, with a revised price forecast lowered from $40.00 to $25.00 [1] - The company is expected to align its FY25 guidance with consensus estimates of $512 million in revenue, reflecting a 3.4% adjusted year-over-year growth, and $98 million in adjusted EBITDA [1] - Management is anticipated to remain cautious due to potential sales and marketing downturns and macroeconomic challenges in early 2025 [2] Group 2 - TechTarget is expected to report an in-line fourth-quarter performance, with consensus revenue estimates of $78.5 million, including approximately $20 million from Informa Tech following the merger [3] - Investors are focused on the timing of $25 million in cost synergies and the integration progress of Informa Tech [3] - Clarity is sought on the structure of business segments, with potential new revenue segmentation combining Brand & Content with Intent & Demand, while Intelligence & Advisory may be reported separately [4] Group 3 - Growth drivers for TechTarget include expanding its total addressable market beyond marketing teams, increased first-party data from the BrightTALK acquisition for cross-selling, and a projected rebound in global IT spending [5] - The updated price forecast is based on a valuation of 17x EBITDA for the combined entity using consensus FY25 estimates [5] - As of the last check, TTGT shares traded lower by 4.12% at $14.20 [5]