Perion Network: Turnaround Play At Rock Bottom Valuation - Buy (Rating Upgrade)

(9min)

Summary

  • Following a number of major setbacks last year, 2025 is off to a strong start for digital advertising solutions provider Perion Network.
  • Despite persistent search advertising headwinds, a number of segments continue to exhibit decent growth.
  • In addition, the company's new Perion One strategy is showing early signs of success.
  • With the vast majority of Perion Network's market capitalization covered by the company's substantial cash reserves, the advertising business is currently valued at below 1x EV/Adjusted EBITDA.
  • Should the company manage to build on the better-than-expected start to 2025, market participants are likely to rerate the stock in the not-too-distant future. Consequently, I am upgrading my rating on the shares from "Hold" to "Buy".
  • Looking for a helping hand in the market? Members of Value Investor's Edge get exclusive ideas and guidance to navigate any climate. Learn More »

Digital marketing concept, Businessman using laptop with Ads dashboard digital marketing strategy analysis for branding. online advertisement, ad on website and social media. SEO. SMM.

Boy Wirat

Note:

I have covered Perion Network Ltd. or "Perion" (NASDAQ:PERI) previously, so investors should view this as an update to my earlier articles on the company.

Last year, the impressive growth story of Israel-based provider of digital advertising

This article was written by

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I am mostly a trader engaging in both long and short bets intraday and occasionally over the short- to medium term. My historical focus has been mostly on tech stocks but over the past couple of years I have also started broad coverage of the offshore drilling and supply industry as well as the shipping industry in general (tankers, containers, drybulk). In addition, I am having a close eye on the still nascent fuel cell industry.

I am located in Germany and have worked quite some time as an auditor for PricewaterhouseCoopers before becoming a daytrader almost 20 years ago. During this time, I managed to successfully maneuver the burst of the dotcom bubble and the aftermath of the world trade center attacks as well as the subprime crisis.

Despite not being a native speaker, I always try to deliver high quality research to followers and the entire Seeking Alpha community.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of PERI either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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