Investing.com - Needham analyst Laura Martin reiterated a Hold rating on Perion Network Ltd. (NASDAQ:PERI) on Tuesday. The stock currently trades at $8.98, near its 52-week low of $8.06, and has declined 16% over the past week. Despite the recent selloff, InvestingPro analysis suggests the stock is undervalued relative to its Fair Value, placing it among opportunities on the most undervalued stocks list.
Martin noted the AdTech industry is pivoting toward outcome-based advertising, facilitated by continuous AI optimization. Perion is mirroring this trend through its pivot toward Perion One with Outmax, which focuses on measurable return on ad spending through automated AI optimization.
Perion One buys ads inside both the Walled Gardens and the Open Internet. For Perion shares to work, the company needs to show that Perion One with Outmax can drive sustainable year-over-year net revenue growth, pricing power attributable to product differentiation, expanding EBITDA margins, and new advertiser adoption.
Needham lowered estimates toward the bottom end of Perion’s fiscal 2026 guidance to reflect the belief that Perion One will need more time to gain traction. The firm lowered its estimates for second quarter 2026 and fiscal 2026.
Needham remains on the sidelines on the stock. InvestingPro Tips highlight that while Perion wasn’t profitable over the last twelve months, analysts predict profitability this year with EPS forecast at $1.18. Access 10 additional ProTips and comprehensive financial metrics to make more informed investment decisions.
In other recent news, Perion Network Ltd. reported mixed first-quarter results. The company’s revenue and connected TV performance were slightly below consensus estimates, while profitability exceeded expectations. Notably, Perion One spend increased by 6% year-over-year, with connected TV and digital out-of-home spending rising nearly 70% and 30%, respectively. Despite the revenue miss, Perion Network reiterated its full-year 2026 guidance, which contributed to positive market reactions. Canaccord Genuity maintained a Buy rating on Perion Network, setting a price target of $14.00. The firm highlighted the company’s strong growth in connected TV and digital out-of-home sectors, which continue to outpace the broader market. These developments reflect ongoing investor interest and analyst confidence in Perion Network’s future performance.
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