Ibotta Inc (IBTA) PT Lowered to $60 at Needham

Needham analyst Bernie McTernan lowered the price target on Ibotta Inc (NYSE: IBTA) to $60.00 (from $80.00) while maintaining a Buy rating.

The analyst commented: "We reiterate our Buy rating on IBTA but lower our price target to $60 as we reset our estimates lower following weaker than expected 4Q results and 1Q guidance. Consistent with the past quarter, supply remains the bottleneck for IBTA which is meaningfully weighing on growth, causing redemption revenue growth to slow from +76% in '23 to +26% in '24, and now we forecast +8% in '25E. However, to fix this management has been working to shift budgets to more programmatic/always on spend and based on driving incremental purchases. In fact, IBTA indicated that two CPG companies are already transacting via this methodology with multiple brands and driving several times higher run rate spend, which is a faster speed to market than we expected. We think this shift should work long-term and if it happens near-term represents upside to our forecast."

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