On Wednesday, Jefferies made a significant adjustment to the price target for NASDAQ:SCOR shares, reducing it to $11.00 from the previous $14.00. The firm has decided to maintain a Hold rating on the stock.
The revision follows the release of financial results that fell short of expectations, particularly in the Syndicated and Custom Digital Solutions sectors. The company's forecast for 2024 was also notably lowered, with both revenues and margins expected to see a year-over-year decline.
According to Jefferies, the path to revitalizing comScore (NASDAQ:SCOR)'s business appears to be extensive. In response to the latest developments, Jefferies has also revised its adjusted earnings per share (EPS) estimate for 2025 downward by 34%, setting the new expectation at $4.78. Despite the changes, the Hold rating on comScore shares has been reiterated.
The adjustment in comScore's price target and EPS estimate comes after a detailed review of the company's recent performance and future outlook. The lowered guidance provided by comScore indicates challenges ahead for the company in achieving growth and improving profitability.
Jefferies' updated analysis reflects a cautious stance on comScore's stock, suggesting investors maintain their current positions without increasing their holdings.
The firm's reiteration of the Hold rating implies that Jefferies does not see an immediate catalyst that could significantly alter the stock's valuation in the near term.
Investors are now equipped with Jefferies' latest perspective on comScore, which includes the reduced price target and adjusted EPS estimate.
InvestingPro Insights
In light of Jefferies' recent adjustments to comScore's (NASDAQ:SCOR) price target and EPS estimates, current InvestingPro data provides further context to the company's financial health. As of the last twelve months leading up to Q2 2024, comScore's market capitalization stands at approximately $58.77 million, reflecting the size of the company in the market. Despite the challenges highlighted by Jefferies, comScore operates with a moderate level of debt and analysts predict it will be profitable this year, which could signal potential for a future turnaround, as indicated by an InvestingPro Tip.
InvestingPro data also shows a Price to Earnings (P/E) ratio of -0.67, suggesting that investors have been willing to endure losses in anticipation of future earnings growth. The company's revenue has experienced a slight decline of 4.66% over the last twelve months, aligning with Jefferies' observations of underperformance in certain sectors. Additionally, the stock has seen significant price reductions over various time frames, with a 35.93% drop in the last six months and a 28.02% decline year to date.
For investors seeking additional insights, there are 8 more InvestingPro Tips available, which delve deeper into comScore's financials and market performance. These could be crucial for making informed decisions, especially when considering the stock's recent volatility and Jefferies' cautious outlook.
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