Criteo (CRTO) faces continued execution challenges that are driving more material declines in its 2026 contribution ex-TAC, but the company retains valuable assets in key areas of digital advertising, Wedbush Securities said in a note Thursday.
The weakness was largely driven by larger clients cutting spending, revising their strategies, and changing the scope of their relationships with Criteo, the investment firm said, while noting that underlying growth in Retail Media and the OpenAI opportunity remain meaningful.
Wedbush said Criteo's Retail Media platform continued to be resilient, with contribution ex-TAC up 20% across the underlying client base and spend rising 31% in constant currency in Q2.
The company's OpenAI brand integration is gaining traction, but is expected to make an impact in 2027 as current spending remains largely in test budgets and the service is available in only seven countries, according to the note.
Wedbush maintained its outperform rating on the stock while lowering its price target to $25 from $30.
Criteo shares were down 1.3% in Thursday trading.
Price: $17.61, Change: $-0.24, Percent Change: -1.34%