Citi has revised its outlook for Outbrain (OB, Financial), lowering the price target from $5.90 to $4 while maintaining a Neutral rating on the shares. This adjustment comes as part of a broader assessment of the internet sector ahead of the first quarter. The firm attributes these changes to expected tariff impacts, which are likely to contribute to a softer macroeconomic environment.
The digital advertising and e-commerce areas are identified as being particularly vulnerable to these tariff implications. In contrast, areas such as web development, small business solutions, and online dating are seen as less affected by these economic pressures.
Citi's analysis highlights several companies perceived as having strong defenses and solid fundamentals, including VeriSign (VRSN), Wix.com (WIX), Godaddy (GDDY), eBay (EBAY), and Criteo (CRTO). On the other hand, companies like Wayfair (W), Trade Desk (TTD), Etsy (ETSY), and Bark (BARK) are considered more exposed to potential tariff-related pressures.
