Taboola: Solid Core Business, Expanding Margins, and AI-Driven Growth Catalysts Support Buy Rating

In a report released today, Mark Zgutowicz from Benchmark Co. reiterated a Buy rating on Taboola.com, with a price target of $4.50.Mark Zgutowicz has given his Buy rating due to a combination of factors that collectively point to attractive risk‑reward in Taboola’s shares. He highlights that the company’s core native advertising business is holding steady, with management anticipating low single‑digit revenue ex‑TAC growth in 2026 and viewing the recently raised 2025 outlook as a reasonable proxy for the following year. He also notes management’s commitment to driving adjusted EBITDA margins to around 30% in 2026, acknowledging some cost pressure in the first half but expecting margin improvement in the back half as operating leverage builds. In his view, this margin trajectory, coupled with solid top‑line visibility, supports a favorable earnings and cash flow profile. Zgutowicz further underscores the strategic potential of Taboola’s emerging products, particularly Realize and DeeperDive, as key medium‑term growth catalysts. Realize is still early in monetization but is already seeing strong adoption and format expansion, especially among new advertisers, which he believes can ultimately reaccelerate revenue growth once these initiatives scale. At the same time, he views DeeperDive as a way to turn the perceived threat from large language models into an opportunity, by deepening user engagement on publisher sites and enabling high‑intent, AI‑driven ad experiences that could be monetized broadly across the open internet. Taken together with Taboola’s limited direct‑search exposure and growing strategic ties with large CTV and device partners, Zgutowicz concludes the company is well positioned competitively, justifying his Buy recommendation.In another report released today, Rosenblatt Securities also initiated coverage with a Buy rating on the stock with a $6.00 price target.