DoubleVerify's (DV) innovation could lead to further customer wins and drive the company's market share gains, BofA Securities said in a Friday note.
"DV is the only company left standing in the media quality measurement space, giving it, we think, greater flexibility with R&D and innovation, which over the long term should help win share in a product market that is not going away anytime soon," the investment firm said.
The company's Q3 results were flat sequentially "as guided" and did not raise major red flags, BofA Securities noted.
DoubleVerify reported Q3 non-GAAP earnings of $0.22 per diluted share, down from $0.23 a year earlier, while revenue increased to $188.6 million from $169.6 million. The company also lowered its year-on-year revenue growth projection to about 14%, from approximately 15%.
BofA Securities said it expects the company's product portfolio positioning to improve in 2026, compared with 2024 and early 2025. The investment firm also said it now projects a 10% top-line growth per year from 2026 to 2028.
BofA Securities upgraded DoubleVerify to buy from neutral, with a lower price target of $14 from $18 previously.
Shares of DoubleVerify were up more than 11% in recent Monday trading.
Price: 10.44, Change: +1.05, Percent Change: +11.18
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