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BMO Capital Keeps Outperform on DoubleVerify (DV) Amid Emerging AI Ad Opportunities
Yahoo Financeยท 2025-09-19 18:49
Core Insights - DoubleVerify Holdings Inc. (NYSE:DV) is identified as a promising low-priced technology stock, with an Outperform rating and a price target of $27 set by BMO Capital analyst Brian Pitz, driven by strong execution and a robust product pipeline expected to enhance growth in 2026 [1][3] Financial Performance - The company has reported a revenue growth of 16.5% over the past year, supported by its Media Authentication Platform (MAP), which boasts gross margins exceeding 82% [2][5] Growth Opportunities - New advertising categories linked to large language models and AI-driven agents present incremental growth opportunities for DoubleVerify, with its MAP providing a competitive advantage in verification and measurement [3][4] - The volume-based business model of DoubleVerify helps mitigate risks associated with cost-per-thousand (CPM) pressures, particularly in the context of AI-generated content affecting ad pricing [4] Market Trends - The analyst anticipates that social media and connected TV will increasingly contribute to revenue growth in upcoming quarters, offering diversification and stability compared to the cyclical nature of programmatic open web advertising [4]