Lake Street Maintains Buy Rating for Perion Network with $14 Price Target

Lake Street analyst Eric Martinuzzi maintained a Buy rating and $14.00 price target for Perion Network (PERI). The company has a Moderate Buy analyst consensus and a price target consensus of $13.50. TipRanks analyst rating is 5-star with an average return of 12.2% and a 51.67% success rate.

Perion Network Ltd. (NASDAQ and TASE: PERI), a leading provider of advanced technology solutions for modern advertising, reported its financial results for the first quarter ended March 31, 2025. The company's CEO, Tal Jacobson, highlighted the strong organic performance across key growth engines, including Digital Out of Home (DOOH), Connected TV (CTV), and Retail Media.

Key highlights include:
- DOOH revenue increased by 80% year-over-year to $17.4 million, representing 19% of total revenue.
- CTV revenue increased by 31% year-over-year to $10.7 million, representing 12% of total revenue.
- Retail Media revenue increased by 33% year-over-year to $19.8 million, representing 22% of total revenue.

These significant increases reflect Perion's strategic focus on expanding its market share and enhancing its platform offerings. The company also announced the acquisition of Greenbids, an AI-first company that specializes in delivering real outcomes to top-tier brands. This acquisition aims to expand Perion's total addressable market and improve its position within walled gardens, thereby gaining deeper access to performance advertising budgets.

Financial performance for the first quarter of 2025 includes:
- Total revenue decreased by 43% to $89.3 million, primarily due to a 28% decrease in the Web channel and a 76% decrease in Search Advertising revenue.
- GAAP net income decreased by 171% to a loss of $8.3 million, influenced by restructuring costs.
- Non-GAAP net income was $5.4 million, or 6% of revenue.
- Adjusted EBITDA was $1.8 million, or 2% of revenue.

Perion's management raised its full-year 2025 revenue and adjusted EBITDA guidance based on the strong Q1 performance and the Greenbids acquisition. The new outlook includes:
- Revenue of $430 to $450 million.
- Adjusted EBITDA of $44 to $46 million.

Additionally, Perion expanded its share repurchase program, authorizing a total of $125 million for the repurchase of its outstanding shares. As of May 12, 2025, the company had repurchased a total of 9 million shares at a total amount of $79.3 million.

Analysts maintain a positive outlook on Perion Network. Lake Street analyst Eric Martinuzzi maintained a Buy rating with a $14.00 price target, while the Moderate Buy analyst consensus and price target consensus stand at $13.50. TipRanks analyst rating is 5-star with an average return of 12.2% and a 51.67% success rate.

References:
[1] https://www.businesswire.com/news/home/20250513815814/en/Perion-Reports-First-Quarter-2025-Results-Raising-Full-Year-2025-Outlook