DoubleVerify stock rises on potential price hike

Investing.com -- Shares of DoubleVerify (NYSE:DV ) climbed 5% following comments from Stifel analyst Mark Kelley indicating the company may be implementing a price increase averaging around 5%.

The potential price adjustments were not officially confirmed by DoubleVerify, but the information surfaced through Stifel's market checks. Kelley has maintained a Buy rating and a price target of $22.00 for the company's stock.

In his analysis, Kelley shared insights from recent market checks aimed at understanding the digital advertising landscape as it transitions out of 2024 and looks towards 2025 budget trends. "We're pleasantly surprised by what we're hearing thus far," Kelley noted. He further revealed, "During this process, we've learned that DoubleVerify is raising prices by roughly 5% on average (pricing ranges from unchanged to +8-10%, depending on the product), effective February 1st." He suggested that this development could alleviate some concerns about pricing pressure within the verification industry.

The analyst's findings offer a glimpse into DoubleVerify's business strategy, potentially signaling a stronger financial outlook for the company if the price increase is implemented. The news has resonated positively with investors, as reflected in the stock's performance during the trading session.

While the company has yet to confirm the price hike, the market's reaction suggests optimism regarding DoubleVerify's ability to execute pricing power in its market segment. The assessment by Kelley, coupled with the maintained Buy rating, appears to have reassured investors of the company's standing amidst the evolving digital advertising environment.

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Source: Investing.com