DSP: Multi-Year Partnership With Major Beverage Firm Will Drive CTV Share Recovery

Analysts have raised Viant Technology's fair value estimate slightly from $17.55 to $17.60. They cite resilient revenue growth, improved profitability, and continued upmarket momentum, despite a modest reduction in price targets following recent earnings and strategic partnerships.

Analyst Commentary

Recent research notes on Viant Technology provide a nuanced outlook on the company's valuation and operational trends. Analysts point to a mix of strengths underpinning the firm's fair value as well as several cautionary factors that could affect future performance.

Bullish Takeaways

• Viant reported strong quarterly results, with revenue performance and EBITDA surpassing expectations.
• The company's strategic multi-year partnership with a major beverage company highlights continued progress moving upmarket and executing against a robust enterprise advertising pipeline.
• Connected television now represents a significant portion of platform ad spend and is expected to expand further as Viant leverages proprietary data and an expanding AI suite.
• Bullish analysts see recent declines in share price as an attractive entry point, especially given prospects for sustained double-digit revenue growth excluding traffic acquisition costs.

Bearish Takeaways

• Some price targets have been lowered, reflecting caution regarding near-term headwinds and competition.
• Year-to-date share performance has been negatively impacted by tariff pressures, the loss of a key advertiser, and risks related to broader competitive dynamics, particularly from large-scale platforms.
• There is ongoing scrutiny of the company's ability to maintain and grow advertiser relationships while defending market share.
• Margin expansion and execution against enterprise pipeline targets remain critical factors for the stock's valuation path.

What's in the News

• Viant Technology provided earnings guidance for Q4 2025, projecting revenue between $101.5 million and $104.5 million. (Key Developments)
• Announced a multi-year partnership that will designate Viant as the advertising platform for Molson Coors Beverage Company starting in 2026. This partnership will focus on leveraging first-party data and programmatic channels. (Key Developments)
• Expanded partnership with Tubi, enabling advertisers to reach over 100 million monthly active users with precise contextual and emotional targeting. This expansion is supported by the acquisition of IRIS.TV. (Key Developments)
• Enhanced its Direct Access program through integration with Magnite's SpringServe video platform. This integration offers advertisers direct-to-publisher access and aims to improve efficiency in CTV strategies. (Key Developments)

Valuation Changes

• Fair Value Estimate has risen slightly from $17.55 to $17.60, indicating a minimal upward adjustment in analysts’ target.
• Discount Rate has decreased marginally from 8.53% to 8.49%, reflecting a slight reduction in perceived risk.
• Revenue Growth Projection is up slightly from 15.29% to 15.37% year-over-year, pointing to improved growth expectations.
• Net Profit Margin estimate has increased substantially from 2.04% to 5.03%, underscoring anticipated gains in profitability.
• Future Price/Earnings (P/E) Ratio has fallen significantly from 39.94x to 15.27x, suggesting that the stock is now seen as more attractively valued based on future earnings potential.