PERION and prosperity compared to other ADTECH companies
Perion Network Ltd. OVERVIEW
- Over the past year, shares of advertising companies have seen a slight recovery, compared to previous years.
- However,$PERI-1.0% has achieved double-digit revenue growth and is approaching a 20% net profit margin in 2023.
Investment Opportunity with Perion:
-$PERI-1.0% offers a rare combination of growth, value and fiscal strength. With a low valuation, zero debt and growth in weighted advertising segments.
- Plenty of cash allows the company to make acquisitions; for example ,$PERI-1.0% recently acquired-1.0%Hivestack for $100 million to upgrade its digital out-of-home advertising business.
Downturn in 2023 and Possible Reasons:
- Shares of $PERI-1.0% have plunged 13% due to geopolitical uncertainties and unfounded concerns about a breakup with Microsoft as their partnership allows Perion to generate revenue through the Bing search engine. The contract is set to expire this year.
- However, the company has strengthened its relationship with Microsoft and diversified its revenue.
Perspective and Recommendation:
- Despite the downturn in 2023, PERI is still considered an interesting investment.
- Analysts recommend a "Buy" or "Hold" with a target price of around $36.75 (25.2% upside).
Do you think PERI stock's 2023 decline is a temporary phenomenon, and do you see future upside potential in this stock?
