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Criteo (NASDAQ:CRTO) rose 3% at least partly amid a note from Citi that sees the ad tech firm as a potential M&A candidate.
“While the headwinds to FY24 Retail Media growth driven by lower economics at its largest retail partner remain (and have negatively impacted investor sentiment), we were encouraged by expectations that FY25 accelerates and come away seeing real value in Criteo’s technology, even as a potential M&A candidate,” Citi analyst Ygal Arounian wrote Friday after recently meeting with Criteo’s CEO Megan Clarken and CFO Sarah Glickman.
Arounian came away from meeting the executives more positively on Criteo’s competitive positioning within Retail Mediia and had “better clarity” that the expected impact Google’s (GOOGL) “cookie deprecation” is unchanged. Citi has a buy rating aned $34 price target on Criteo (CRTO).
Last month a DA Davidson analyst wrote that Criteo (CRTO) could be an attractive acquisition target with upside of as much as 40% in a potential takeover at a price of $36-$46 a share.
The M&A comments are noteworthy after as European activist fund Petrus Advisers disclosed a stake in the French ad tech firm earlier this month. Petrus Advisers unveiled a more than 5% stake in Criteo (CRTO), according to a recent 13G filing.
The activist stake comes as Criteo (CRTO) has been speculated as a takeover target for several years, and Reuters reported in February that the ad tech firm had hired banker Evercore to explore a sale. In 2021 Bloomberg reported that Criteo (CRTO) received takeover interest and it was reported in 2017.