Google (GOOGL) has decided to continue supporting third-party cookies in its Chrome browser, which marks a shift from its earlier plan to fully phase them out or implement a choice screen structure by July 2024. This decision is expected to have significant implications across the digital advertising industry.
Investment firm Wells Fargo highlights that Criteo (CRTO, Financial) stands to gain the most from Google's revised timeline, followed by companies like DoubleVerify (DV) and Magnite (MGNI). Criteo, which relies heavily on third-party cookies for targeted advertising, may find this extension particularly beneficial.
On the other hand, companies such as Trade Desk (TTD) and LiveRamp (RAMP) face a more nuanced scenario. While the extension may prevent initial disruptions in their operations, it potentially undermines the competitive advantage offered by their proprietary solutions like UID 2.0 and ATS in the long run.
This development is a pivotal moment for digital advertisers as they navigate the evolving landscape of consumer privacy and data utilization. The industry will continue to watch how these changes influence competitive dynamics among major players.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 11 analysts, the average target price for Criteo SA (CRTO, Financial) is $55.55 with a high estimate of $68.00 and a low estimate of $40.00. The average target implies an upside of 75.22% from the current price of $31.70. More detailed estimate data can be found on the Criteo SA (CRTO) Forecast page.
Based on the consensus recommendation from 13 brokerage firms, Criteo SA's (CRTO, Financial) average brokerage recommendation is currently 2.1, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Criteo SA (CRTO, Financial) in one year is $19.93, suggesting a downside of 37.13% from the current price of $31.7. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Criteo SA (CRTO) Summary page.
