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Investment thesis
Shares of DoubleVerify (NYSE:DV) have been under pressure so far this year as the business has had to deal with headwinds related to the loss of revenue from a
DoubleVerify: Attractive Valuation Amidst An Improved Outlook (Rating Upgrade)
Summary
- Updated Q2 guidance points to 17% year-over-year growth, compared to 10% expected previously.
- Expectation for full-year revenue growth was raised to 13%, from the prior 10%.
- While this guidance implies a sharp deceleration in the second half, this appears to be due to management being conservative given the macro uncertainty.
- Based on my estimates, shares are currently trading at 12.6 times FCF.
- I am upgrading DV stock from Hold to Buy.
An individual investor primarily focused on undercovered companies, with more than 50 companies on my watchlist. My areas include technology, software, electronics and the energy transition. I have been investing my personal capital for over 7 years in a broad range of companies globally. Through my years of analyzing countless companies, I have accumulated professional investment experience within my circle of competence. I have a Masters degree in Electrical Engineering and currently work as an automotive battery RnD engineer in Sweden. My write-ups on SA are a good way for me to layout my investment thesis on companies and receive feedback from the broader investing community. I enjoy diligently studying and researching small to mid cap companies which are often researched to a lesser extent by others. Through my analysis of numerous companies, I seek to identify asymmetric investment opportunities with the goal of achieving market beating returns.
Analyst’s Disclosure:I/we have a beneficial long position in the shares of IAS 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.
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