Ibotta Inc (IBTA) PT Lowered to $56 at Goldman Sachs

Goldman Sachs analyst Eric Sheridan lowered the price target on Ibotta Inc (NYSE: IBTA) to $56.00 (from $89.00) while maintaining a Buy rating.

The analyst comments "We recap IBTA’s Q4’24 earnings report which reflected a few key themes: 1) Q4 revenues & a forward revenue outlook below expectations as offer supply constraints outweighed healthy sequential growth in total redeemers; 2) management cited a weak advertiser demand environment leading to headwinds over the medium-term; 3) despite these headwinds, 3P publisher supply continue to show encouraging signs and bode well for long-term growth; & 4) near-term step-down in incremental margins as management cites a need to invest in ad tech and go-to-market. Over the short-term, we expect the shares to remain volatile as investors continue to digest elements of the mgmt commentary on budget visibility beyond 1H 2025 with the shares likely remaining rooted as a show me story. Over a multi-year timeframe, we continue to see Ibotta as positively levered to several long-term secular growth themes within our sector across both digital advertising and grocery and remain encouraged by the company’s progress around ramping 3P publisher opportunities – that said, we recognize that lack of visibility into medium-term ad budget trends will likely remain a key debate for investors. We reiterate our Buy rating and lower our 12-month price target from $89 to $56."

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