JPMorgan Downgrades TechTarget (TTGT) Stock, Cuts PT

TechTarget, Inc. (NASDAQ:TTGT) is one of the 7 best undervalued stocks to buy now. On June 10, JPMorgan analysts downgraded the company’s stock from “Neutral” to “Underweight,” reducing the price objective from $18.00 to $8.00. The downgrade comes after the company released its financial results for FY 2024. The company’s reported results for 2024 demonstrate the structure of a combination, comprising 12 months’ contribution from the Informa Tech digital businesses and ~1 month’s contribution from the legacy TechTarget business, being the period from completion of the transaction (December 2, 2024) to the end of the year.

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On this basis, its reported revenues came in at $285 million, with a GAAP net loss of $117 million. The net loss reflects the small contribution period of TechTarget, acquisition and integration costs, and non-cash impairments. Furthermore, TechTarget, Inc. (NASDAQ:TTGT) stated that the market backdrop remains uncertain in H1 2025, and it expects a low-to-mid-single-digit YoY decline in revenues throughout the H1 2025 period, with sequential improvement from Q1 to Q2.

Overall, JPMorgan’s analysis demonstrates that the recent clarity on TechTarget, Inc. (NASDAQ:TTGT)’s combined performance and near-term prospects resulted in a less favorable view of its investment appeal. TechTarget, Inc. (NASDAQ:TTGT) stated that it targets the growth trajectory to improve further through H2 2025, as its expanded customer and go-to-market strategy continues to gain momentum, providing broadly consistent YoY revenue performance.

While we acknowledge the potential of TTGT to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk.  If you are looking for an AI stock that is more promising than TTGT and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.