DoubleVerify Stock Rises on Potential Price Gains

Investing.com -- DoubleVerify (NYSE:DV) shares rose by 5% following comments from Stifel analyst Mark Kelley, who indicated that the company could implement an average price increase of about 5%. The potential price adjustments have not been officially confirmed by DoubleVerify, but the information emerged from Stifel's market checks. Kelley maintained an "Outperform" rating for the company's stock and a target price of $22.00.

In his analysis, Kelley shared insights derived from recent market checks aimed at understanding the dynamics as the digital advertising environment transitions from 2024 into 2025 budget trends. "We are quite pleased with what we've heard so far," he stated. He also noted: "In this process, we learned that DoubleVerify plans to increase prices by an average of around 5% effective February 1, with price changes varying from unchanged to as high as +8-10% depending on the product." He suggested that this development could alleviate some concerns regarding pricing pressures in the verification sector.

The analyst's findings provide a glimpse into DoubleVerify's business strategy and indicate a potentially stronger financial outlook for the company should the price increase be implemented. The news has resonated positively among investors, as evidenced by the stock's performance during the trading session.

Although the company has not yet confirmed the price increase, the market's reaction reflects optimism regarding DoubleVerify's ability to exercise pricing power within its market segment. Kelley's assessment and his maintenance of the "Outperform" rating appear to reassure investors about the company's position in the evolving digital advertising landscape.