A Look at Criteo (CRTO) Valuation Following Its Strategic Partnership with DoorDash

Criteo (NasdaqGS:CRTO) has just unveiled a multi-year partnership with DoorDash to expand advertising opportunities across the DoorDash marketplace, with a particular focus on grocery and convenience channels. The collaboration is designed to broaden how brands and agencies connect with consumers at the point of purchase.

See our latest analysis for Criteo.

Even with the buzz from Criteo's DoorDash partnership, the stock has faced definite headwinds, posting a -49% share price return year-to-date and a -50.6% total shareholder return over the past year. While momentum has faded lately, longer-term holders who weathered previous cycles are still well ahead, with a 55% total return over five years. This serves as a reminder of how fortunes can swing in this space.

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With shares trading well below analyst targets and a fresh strategic partnership on the table, investors are left wondering if Criteo is undervalued at current levels or if the market has already priced in future growth. Is this a buying opportunity, or is caution still warranted?

Most Popular Narrative: 47.5% Undervalued

Criteo’s most widely followed narrative points to a striking disconnect between the current share price and fair value. With the last closing price at $20.05 and the narrative’s fair value sitting close to double that, attention is turning to what could drive this gap to close.

Accelerating investments and product rollouts in Retail Media and Commerce Media (such as auction-based display and on-site video), along with strategic partnerships (WPP, dentsu, Mirakl, Microsoft), are broadening Criteo's platform reach and enabling share gains, positioning the company to capture a larger slice of the fast-growing digital ad spend and drive top-line growth.

Read the complete narrative.

What is the math fueling this bullish call? The answer lies in bold forecasts for margin expansion, declining share count, and a future profit multiple historically reserved for market leaders. Uncover which projections are setting this price target apart. Read on and see the full story behind the fair value.

Result: Fair Value of $38.17 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, competition from industry giants and uncertainty in monetizing AI-powered solutions could slow Criteo’s growth and challenge the optimistic narrative.

Find out about the key risks to this Criteo narrative.

Build Your Own Criteo Narrative

If you see the story differently or want to dig into the numbers yourself, it’s easy to craft your own take on Criteo in just a few minutes with Do it your way.

A great starting point for your Criteo research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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