JMP Securities maintains Market Outperform on Teads, PT down to $5 from $10.

JMP Securities maintains Market Outperform on Teads, PT down to $5 from $10.

JMP Securities has maintained its "Market Outperform" rating for Teads Holding (NASDAQ:TEAD), but has significantly reduced its price target from $10 to $5. This adjustment comes in the wake of Teads' second-quarter results and the withdrawal of its full-year EBITDA guidance. The digital advertising company, currently trading at $1.95 with a market cap of $183.41 million, has faced several operational challenges, including lower conversion rates from the sales pipeline and a slower-than-expected return to growth following its merger [1].

Teads reported in-line results for the second quarter of 2025, but withdrew its full-year EBITDA guidance due to post-merger operational challenges that emerged in June. These issues have led to a 63.4% decline in stock price over the past six months. Despite these setbacks, analysts expect 61% revenue growth this year, with the company projected to return to profitability [1].

The company has implemented leadership changes and refined its go-to-market strategy, which have shown early signs of improvement in pipeline and conversion key performance indicators. Management remains committed to achieving targeted cost synergies and generating positive free cash flow in 2025. JMP Securities believes Teads remains well-positioned to offer advertisers an integrated brand-to-performance platform across the open web [1].

In other recent news, Teads Holding reported its second-quarter earnings for 2025, revealing an earnings miss. The company posted an EPS of -$0.10, which fell significantly short of the forecasted -$0.0107. Revenue for the quarter was reported at $343 million, slightly below the expected $352.22 million. Despite a 158% year-over-year increase in net revenue to $144 million, the results have led to investor concerns. Adjusted EBITDA reached $27 million, up from $7 million the previous year, though this figure was 12% below Needham’s estimate. Consequently, Needham adjusted its price target for Teads from $5.00 to $3.50, while maintaining a Hold rating [1].

References:
[1] https://www.investing.com/news/analyst-ratings/teads-stock-price-target-cut-to-5-at-jmp-on-postmerger-challenges-93CH-4178501
[2] https://www.marketbeat.com/instant-alerts/jmp-securities-begins-coverage-on-aerovironment-nasdaqavav-2025-08-04/