Taboola Stock (TBLA) Target 50% Up From Here In New Analyst Coverage

Taboola’s stock (NASDAQ: TBLA) is experiencing a 2.48% jump in the pre-market, following a 3.33% bounce yesterday, as bullish coverage by Rosenblatt projects a substantial upside for TBLA. The technology company, having closed at $4.03, has seen the firm set a price target of $6.00, almost 50% up from here.

This comes after a solid year for the stock, up 8% YTD despite some pointing to Taboola as vulnerable to the evolving landscape of AI-driven search, particularly concerning Google’s innovations.

Robenblatt’s analysis points to Taboola’s proactive integration of artificial intelligence into its direct marketing solutions as a key differentiator. With a network spanning 9,000 publishers, the firm argues that Taboola is well-positioned to mitigate any potential adverse effects stemming from shifts in Google’s search referral patterns. This coverage marks a significant vote of confidence in Taboola’s strategic direction and technological capabilities.

Other analyst moves have been mixed, with Benchmark recently adjusting its price target upwards to $4.50, maintaining a ‘Buy’ rating, citing consistent gross profit growth in the third quarter, excluding traffic acquisition costs, and the increasing adoption of Taboola’s Realize platform among advertisers. This positive outlook was further supported by the company’s overall revenue growth of 10.96% over the past twelve months, alongside an increase in scaled advertisers and revenue per advertiser. 

However, not all assessments have been uniformly optimistic. B. Riley downgraded Taboola’s stock to ‘Neutral,’ reducing the price target to $4.00, anticipating a longer timeframe for the company’s new platform and strategy to yield significant results. Despite this cautious outlook, B. Riley acknowledged Taboola’s robust adjusted EBITDA margins and strong free cash flow generation, which could provide downside protection. BTIG Research initiated coverage with a ‘Neutral’ rating, reflecting a more reserved stance, suggesting a period of observation given existing uncertainties.

Solid Financials

Taboola’s financial performance in recent quarters has been robust. In the second quarter of 2025, the company reported revenues of $465.5 million, an 8.7% increase year-over-year, fueled by growth in scaled advertisers and average revenue per advertiser. This performance led to an increased full-year 2025 outlook. The first quarter of 2025 also exceeded expectations, with revenues of $427.5 million, prompting an expansion of the stock repurchase program by $200 million, underscoring management’s confidence in the company’s financial health and future prospects.

The three months leading up to July 3, 2025, saw Taboola’s stock price increase by 36.5%, outpacing its industry peers, driven by solid first-quarter results and the expanded share repurchase program that helped reverse a bearish start to 2025.

Rosenblatt’s analysis suggests that the market may be underestimating Taboola’s resilience and adaptability in the face of evolving search technologies, setting the stage for a potential re-rating as confidence in the company’s ability to capture market share grows.