The average target price of IBTA is 60 and suggests 63% upside potential. Usually, this means a BUY recommendation among investment firms, or a recommendation to increase one's position in this instrument in the next 12 months. The most optimistic analyst has a target price of 70.0. This translates into 90% upside potential in the best case. On the other hand, the most pessimistic analyst has a target price of 54.0. This suggests 46% upside potential. Even the most pessimistic analyst believes there will be stock growth. 

Ibotta, Inc. operates as a technology company that offers Ibotta Performance Network (IPN) that allows consumer packaged goods brands to deliver digital promotions to consumers. It offers promotional services to publishers, retailers, and advertisers through the IPN. The company was formerly known as Zing Enterprises, Inc. and changed its name to Ibotta, Inc. in 2012. The company was incorporated in 2011 and is based in Denver, Colorado.

Ibotta, Inc.

Technology

The company pays dividends irregularly. There have only been a few years with dividend payments in the past ten years. Dividend per share (DPS) has grown yearly, but the dynamics are unclear. In the past 12 months, the dividend yield has barely been above zero and was substantially below that of its peers. On average, the company pays dividends every four months. 

The stock's performance has been mixed in the past six months, with growth following a decline. The stock has lagged its global peers from the same sector and industry (as shown above), underperforming then by 52ppts in total. This is largely true for peers from the same country and sector. With respect to the stock's valuation against its peers, its overall price performance is slightly negative.

The company has reported weak EBITDA margins compared to its global peers in recent years. EBITDA margin amounted to 7.4% in the last 12 months, a decline from 18.3% in FY23. 

Historically, IBTA has reported weak net margins compared to its global peers. Specifically, in the last 12 months, this metric equalled 16.2%, a growth from 11.9% in FY23. 

Another important profitability metric, return on assets (RoA), amounted to 12.5% in the last 12 months, an increase from 11.9% in FY23. The market analysts predict that RoA will be 0.7% in FY24, though below its peers in this period. 

In the last 12 months, the return on capital employed (RoCE) declined to 21.3%, above the peers. The consensus estimate for FY24 for RoCE is 2.4%, however, this time below its peers. 

Ibotta, Inc. reported a return on equity (RoE) of 28.0% in the last 12 months, down from 136.5% in FY23. The market consensus projects an RoE of 7.8% in FY24, however, this time below its peers. 

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been -3.7 in the past several years. This ratio implies a fragile shareholder value creation. 

The institutional, legal, and compliance risks associated with the company's country are minimal. In combination with stringent business standards, shareholder rights are very highly protected.

IBTA has above average trading liquidity. The average private investor can sell his common position in the stock almost immediately. Liquidity is usually stable and remains extremely favourable on the days with the lowest activity. However, please consider that under highly turbulent market conditions, the trading volume tends to decrease significantly. The stock has a small market capitalisation, which usually makes its trading liquidity erratic and unpredictable. 

No other major risks have been identified.

The risk of default is minimal. We note resilient historical revenue growth, solid return on capital, low margin volatility, strong debt servicing capacity, and solid cash flow generation, among the positive credit factors. Among the negative credit factors, we point to bleak profitability, poor working capital management, and an unfavourable capital structure.

In highly turbulent market conditions, IBTA is exceptionally volatile. In other words, the stock will be among the worst-performers in times of extreme market volatility or shocking company news. Standalone, the worst-day losses (less than 1% of the time) will likely be critical. 

In normal market circumstances, IBTA is highly volatile. Put differently, without outstanding market volatility or shocking company news, the stock's price will change somewhat erratically. The stock's losses on its worst days (less than 1-5% of the time) will range from moderate to substantial. 

From both historical and forecast perspectives, the stock is slightly overpriced compared to similar stocks. In particular, the stock is reasonably priced on P/E, 'expensive' on EV/EBITDA, trading at neutral levels on P/FCF. 

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Ibotta, Inc.

$ 37.17

3

Ibotta, Inc.

$ 37.17

3

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$ 37.17

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