Dallas, Texas 07/09/2015 (Financialstrend) – Digital ad firm Criteo SA (ADR) (NASDAQ:CRTO) can now compete with Google Inc (NASDAQ:GOOGL) on the ads business having seen its cookies run on 49% of the top retail and travel sites. The company’s push to beef up its presence in China could see its market share increase further in the space
Bullish Stock Sentiments
Evan Wilson, an analyst at Pacific Crest, maintains an ‘overweight’ rating on the stock having increased his share price target to $65 from $55. Bringing Alibaba on board as a customer should help in the expansion of Criteo SA (ADR) (NASDAQ:CRTO)’s market share, essential for winning the e-commerce giant’s business in China.
Analysts at Cowen and Co also remain bullish over the stocks prospects having initiated an ‘outperform’ rating with a $58 share price target. However, Criterion faces a mounting challenge going forward on concerns that Apple Inc. (NASDAQ:AAPL) is considering permitting ad blockers in iOS, which could substantially affect its business.
Google currently runs cookies in 76% of the top 100 sites offering the biggest challenge to Criteo SA (ADR) (NASDAQ:CRTO) push to scale its business, going forward. Besides Google, Criteo also competes against Facebook Inc (NASDAQ:FB) and e-commerce giant Amazon.com, Inc. (NASDAQ:AMZN). Most of Criteo’s revenues come from e-commerce and travel verticals.
Positive Long Term Prospects
Criteo SA (ADR) (NASDAQ:CRTO) posted a stellar first quarter seen by sales coming in at $283.3 million representing a 35% increase, an achievement that prompted it to increase its full year guidance. The company expects its total addressable market to clock $20 billion by 2018 as it continues to expand into Asia.
Criteo SA (ADR) (NASDAQ:CRTO) has been expanding its ads offering portfolio having picked up new segments including real estate and travel. The Paris-based company provides personalized advertising services by using the cost-per-click model. The company serves approximately 7,800 advertisers most of whom have relationships with more than 10,000 publishers.