Investing.com - Canaccord Genuity reiterated a Buy rating and $14.00 price target on Perion Network Ltd. (NASDAQ:PERI) following the company’s first-quarter results.
Perion reported mixed first-quarter results, with revenue and connected TV performance modestly below consensus, while profitability came in slightly above expectations. The stock has declined sharply, falling 13% over the past week to $9.01, now trading near its 52-week low of $8.06. Perion One spend grew 6% year-over-year, while CTV and digital out-of-home spend increased nearly 70% and 30% year-over-year, with both continuing to outpace the broader market.
Outmax AI agent spend rose more than 300% year-over-year on a pro forma basis, albeit from a small base, reflecting accelerating customer adoption as well as expansion across channels. The first-quarter launch of Outmax for TikTok generated over $1 million of spend in the quarter.
Management highlighted a solid pipeline that includes several large strategic agreements in advanced stages that are expected to onboard in the second quarter and ramp through the second half of 2026. The company noted that macro headwinds have been weighing on advertiser budgets and planning cycles so far in the second quarter, particularly within consumer packaged goods and to a lesser extent auto, driven by elevated oil prices and Middle East tensions.
Perion reiterated its fiscal 2026 guidance, supported by the pipeline momentum as well as accelerating adoption of Outmax. Analysts predict the company will return to profitability this year, with EPS forecast at $1.37. According to InvestingPro analysis, the stock appears undervalued at current levels. Canaccord lowered its estimates modestly to reflect near-term uncertainty, although the firm remains just above the lower end of guidance across both contribution ex-TAC and adjusted EBITDA.
In other recent news, Perion Network Ltd. reported its first-quarter results, which did not meet analyst expectations. Despite the revenue miss, the company’s shares saw a 4.50% increase in pre-market trading. This rise occurred as Perion Network reiterated its full-year 2026 guidance, which may have provided some reassurance to investors. The company’s reaffirmation of future guidance suggests confidence in its long-term strategy. These developments come amid a broader context of market reactions to earnings reports. Investors often look for guidance updates to gauge a company’s future performance. The reiteration of the 2026 guidance appears to have played a role in the market’s positive response.
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