CIBC Capital Markets maintained its neutral rating on the shares of VerticalScope (FORA.TO) while lowering its price target to C$3.50 from C$4.00 after the company reported its first-quarter financial results.
The bank believes that without a clear inflection, upside is capped and the risk/reward stays balanced.
"Bottom line: we like the asset and the improving product, but remain Neutral until we see a durable re-acceleration in MAU and organic digital advertising growth," said analyst Todd Coupland. "Our C$3.50 price target (prior C$4.00) is based on an EV/2026E EBITDA (including capex) multiple of 5x (prior 4x) and, as a secondary valuation, an EV/2026E FCF of 5x (prior 4x)."
CIBC raised its target multiple due to stabilizing MAU, offset by lower estimates, it said. For 2026 and 2027, it sees revenue falling by 3% and growing by 5%, respectively.
"As growth has yet to materially inflect higher, in our view it is too early to get constructive on FORA," Coupland added. "It remains uncertain whether recent challenges indicate a structural shift in the industry, particularly as online traffic patterns face disruption by AI Search overlays, potentially disadvantaging forum communities like VerticalScope's."
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Price: $2.55, Change: $-0.25, Percent Change: -8.93%