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Summary

  • Brokers revised their ratings on Perion to “Buy” after the release of the company’s Q1 2023 earnings.
  • PERI garnered an “Outperform” rating from Raymond James on May 3, 2023, with a price target of US$ 41.
  • The PERI stock closed at US$ 32.93 on May 15, 2023.

Perion received upgraded broker recommendations after the release of its financial results for Q1 2023. The company’s results highlighted its performance in the adtech industry across its three primary channels of digital advertising.

The company offers online advertising services to its clients. Some of Perion’s products and services include Smilebox, Codefuel and Undertone. Its major revenue stream is search fees and online advertising services.

Perion announced its Q1 2023 results on May 3, 2023, showcasing 16% revenue growth and 54% increase in net income. In the current recessionary phase, Perion’s financial results hold significance as other companies in the industry have hardly performed well.

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The PERI stock closed at US$ 32.93 on May 15, 2023, and reached its 52-week high of US$ 42.75 on April 17, 2023.

Brokers’ recommendations on Perion

Soon after the release of the company’s financial results, many brokers revised their recommendations on the stock. Raymond James maintained its “Outperform” rating on PERI on May 3, 2023, but revised price target upward to US$ 41.

Meanwhile, Needham & Company maintained its “Buy” rating and a price target of US$ 42 on the stock. This target price indicates an upside potential of 24.5% over its closing price of US$ 32.93 on May 15, 2023. Roth MKM also maintained its ‘Buy’ recommendation and target price of US$ 40 on PERI on May 3, 2023.

At the same time, Stifel Nicolaus and Company downgraded the stock to “Hold” but maintained a price target of US$ 36. Oppenheimer & Company maintained its “Outperform” rating on Perion and revised price target to US$42.

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On a mean basis, the consensus price target for PERI stands at US$ 38.81 and the consensus recommendation for the stock is “Buy”.

Perion’s financial results for Q1 2023

Perion’s display advertising revenue stood at US$ 79.9 million in Q1 2023. Additionally, its total revenue increased 16% to US$ 145. 2 million in Q1 2023, compared to US$ 125.3 million in Q1 2022.

The net income of Perion increased 54% to US$ 23.8 million in Q1 2023, compared to US$ 15.5 million in Q1 2022. The adjusted EBITDA was US$ 31.3 million and the cash flow from operations stood at US$ 17.8 million in Q1 2023.

The company reported an uptick in its revenue on the back of its operations in areas where technology is in the forefront. These areas include video, retail-media, and the company’s search advertising solution. The company also credited the latest bump in AI for a 49% year-on-year increase in average daily searches for the company.