Perion Network soars on upgraded guidance

Doron Gerstel Photo: Eyal Yitzhar

The digital branding technology company's share price is up 46% since Friday's close.

The share price of Perion Network Ltd. (Nasdaq:PERI: TASE:PERI) soared by 46% in New York between Friday and yesterday's close, from $7.73 to $11.29, following upgraded guidance published by the company on Monday. This brings Perion Network's market cap to $298 million. On the Tel Aviv Stock Exchange this morning, the company's share price is up 3.22%, at NIS 35.92.

Perion now expects fourth quarter revenue to be in the range of $100-105 million, up from $81-91 million in the company's previous guidance, and representing growth of 31% from the fourth quarter of 2019 at the mid-point of the range. EBITDA is now expected to be $13-14 million, up from $8-10 million, representing growth of 11% in comparison with the fourth quarter of 2019 at the mid-point.

Perion Network delivers what it calls a Synchronized Digital Branding solution across ad search, social media and display/video advertising.

"The acceleration of Perion’s advertising revenue growth is being driven by higher-than-expected revenue synergies from recent acquisitions, as well as higher demand across our CTV and video offerings," said Perion CEO Doron Gerstel. "Additionally, following the four-year renewal of our partnership with Microsoft, announced earlier this quarter, we see an increased number of publishers who wish to engage with Perion’s search business unit. These achievements underscore the success of our diversification strategy and are expected to contribute to double digit revenue growth rates over the coming years for Perion."

In response to the higher guidance, investment houses covering Perion Network have raised their twelve-month price targets for its share: Roth Capital Partners has raised its target from $10.75 to $12; Lake Street Capital Markets has raised its target from $10 to $12; and Sidoti & Company has raised its target from $11 to $12.

Published by Globes, Israel business news - en.globes.co.il - on December 9, 2020

© Copyright of Globes Publisher Itonut (1983) Ltd. 2020

Doron Gerstel Photo: Eyal Yitzhar
Doron Gerstel Photo: Eyal Yitzhar
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