Criteo SA (CRTO) has been upgraded to a "Buy" by Citi, with a new price target of $60, up from $50, reflecting confidence in its strategic shift towards Retail Media and Commerce Media. The report highlights Criteo's strong Q4 performance, driven by Retail Media, which has solidified its position as a key player in digital advertising. Criteo's ability to leverage first-party data and a closed-loop ecosystem is enhancing its competitive edge, making it an attractive acquisition target. Citi notes, "Criteo’s strength is becoming so material in Retail Media and broader targeting that we see its ~6x ‘26E EBITDA multiple not just an attractive entry point for investors, but also makes Criteo an increasingly attractive takeout candidate."
The report emphasizes Criteo's growing importance to agencies and advertisers, with its full-funnel platform gaining traction and driving deeper relationships. The company's partnership with Microsoft and expansion into social channels like TikTok are seen as differentiators. Criteo's FY25 guidance is viewed as conservative, with potential upside from its diversified product offerings and strong performance media results.
Criteo closed at $45.17 on February 5, 2025, marking a 17.63% increase.