TechTarget Faces Macro Challenges And Valuation Compression, Analyst Cuts Price Forecast

Needham analyst Joshua Reilly reiterated a Buy standing connected the shares of TechTarget Inc (NASDAQ:TTGT) and lowered the terms forecast from $40.00 to $25.00.

TechTarget is expected to align its FY25 guidance with statement estimates of $512 cardinal successful gross (3.4% adjusted Y/Y growth) and $98 cardinal successful adjusted EBITDA, said the analyst.

Management is apt to stay cautious owed to imaginable income and selling downturns and macroeconomic headwinds successful aboriginal 2025. Integration advancement and $25 cardinal successful outgo synergies volition beryllium cardinal topics, the expert noted.

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TechTarget is expected to study an in-line fourth-quarter, though absorption has not updated guidance to bespeak 1 period of gross from Informa Tech pursuing the December 2nd merger.

Consensus gross estimates of $78.5 cardinal look accurate, with Informa Tech contributing astir $20 million.

Investors are apt focused connected the timing of $25 cardinal successful outgo synergies and the advancement of Informa Tech’s integration.

They besides question clarity connected however concern segments volition beryllium structured. A caller gross segmentation whitethorn harvester Brand & Content with Intent & Demand, portion Intelligence & Advisory could beryllium reported separately, aligning with the updated capitalist presentation, opined the analyst.

TechTarget provides a unsocial B2B acquisition intent selling platform, leveraging first-party, privacy-compliant information from 150+ online properties.

Growth drivers see expanding its full addressable marketplace beyond selling teams, accrued first-party information from the BrightTALK acquisition for cross-selling, and a projected rebound successful planetary IT spending.

The updated terms forecast is based connected 17x EBITDA for the combined entity utilizing statement FY25 estimates.

Price Action: TTGT shares traded little by 4.12% astatine $14.20 astatine past cheque Tuesday.

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