Lake Street has adjusted its price target for Cardlytics (CDLX, Financial), reducing it from $3 to $2.50 while maintaining a Hold rating on the stock. Despite showing solid performance in the first quarter and providing guidance that meets expectations, the firm foresees challenges in billings comparisons potentially weighing on growth over the upcoming two quarters.
However, positive indications suggest that Cardlytics may return to growth, though the company remains in a phase of proving itself. The adjustment in the price target is attributed to multiple compression within the sector, as outlined by the analyst. These factors combine to provide a cautious yet optimistic outlook for the company's future performance.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 5 analysts, the average target price for Cardlytics Inc (CDLX, Financial) is $2.90 with a high estimate of $3.00 and a low estimate of $2.50. The average target implies an upside of 34.26% from the current price of $2.16. More detailed estimate data can be found on the Cardlytics Inc (CDLX) Forecast page.
Based on the consensus recommendation from 6 brokerage firms, Cardlytics Inc's (CDLX, Financial) average brokerage recommendation is currently 3.2, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Cardlytics Inc (CDLX, Financial) in one year is $5.35, suggesting a upside of 147.69% from the current price of $2.16. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Cardlytics Inc (CDLX) Summary page.
CDLX Key Business Developments
Release Date: May 07, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Cardlytics Inc (CDLX, Financial) reported strong consumer spending data, with growth in categories like auto, home improvement, e-commerce, and apparel.
- The company successfully launched with a new large financial institution (FI) partner, which is now one of their top five banks in terms of billing's run rate.
- Cardlytics Inc (CDLX) expanded its network beyond financial institutions by signing its first non-FI partner agreement with a leading digital sports platform.
- The company has improved its tech stack, allowing for quicker onboarding of new partners, reducing integration time significantly.
- Cardlytics Inc (CDLX) introduced new metrics, Monthly Qualified Users (MQUs) and Adjusted Contribution per MQU (ACPU), to better reflect their business performance.
Negative Points
- Total billings decreased by 7.3% year-over-year, and revenue decreased by 8.4%, driven by lower top-line billings and a category mix of advertisers.
- The travel category saw a decline due to shrinking budgets from key accounts.
- Adjusted EBITDA was negative $4.4 million, a decline of $4.6 million compared to the previous year.
- The company announced a 15% reduction in its workforce to manage costs, which may impact employee morale and productivity.
- There is ongoing macroeconomic uncertainty, leading advertisers to be cautious with their budgets, impacting Cardlytics Inc (CDLX)'s revenue potential.
