On Monday, Morgan Stanley (NYSE:MS) adjusted its stock price target for Voestalpine AG (VOE:AV) (OTC: VLPNF), increasing it slightly to EUR 25.20 from the previous EUR 24.80. The firm maintained its Equalweight rating on the stock. The revision follows an announcement by PERI regarding its preliminary first-quarter results and updated guidance for the fiscal year 2024, which fell short of expectations.
PERI, a partner of MSFT Bing, experienced a decrease in Search Advertising activity and revenue during the first quarter of 2024 due to changes in MSFT Bing's advertising pricing and mechanisms. These changes negatively impacted PERI's Revenue Per Thousand impressions. Consequently, PERI anticipates a first-quarter revenue of $157 million and an Adjusted EBITDA of $20 million.
For the full fiscal year 2024, PERI has revised its revenue forecast downward to a range of $590 million to $610 million, a significant drop from its previous guidance of $860 million to $880 million. The company also reduced its Adjusted EBITDA expectation to between $78 million and $82 million, down from the earlier range of $178 million to $182 million.
In response to PERI's updated guidance, Morgan Stanley lowered its own estimates for PERI's performance in the first quarter of 2024, as well as for the full fiscal years 2024 and 2025.
Correspondingly, the firm has decreased its stock price target for PERI to $18 from the prior target of $35. This adjustment reflects the anticipated impact of the changes implemented by MSFT Bing on PERI's financial outcomes.
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