Viant Technology (DSP) Stock Forecast & Price Target

Viant Technology Inc. reported an impressive EBITDA of $74.5 million, reflecting a substantial 34% year-over-year growth, accompanied by a remarkable increase in margin by 220 basis points to 29.1%. Despite certain headwinds, adjusted revenue ex-TAC showed a robust anticipated growth of approximately 22% year-over-year for the third quarter, driven by a surge in demand across TV, audio, and digital out-of-home advertising, which constituted 56% of total sales. Additionally, the company is forecasting high-teens revenue growth and adjusted EBITDA margin expansion for FY26, alongside mid-teens growth and further margin improvement for FY27, indicating a strong and favorable financial trajectory.

Viant Technology Inc. has experienced a decline in EBITDA margins, falling 80 basis points year-over-year to 30.2%, which raises concerns about the sustainability of its profitability. The company's mid-market focus exposes it to significant volatility risks from high-spending client losses, particularly in key advertising sectors such as retail and automotive. Additionally, the reliance on advertising agencies for client acquisition adds a layer of distribution channel concentration risk, while competitive pressures necessitate continuous technological advancements, with potential execution delays jeopardizing market share and pricing power.