DMS - Aterian Digital Media Solutions fall after BTIG downgrades on 'choppy' fundamentals

2023-04-18 09:09:43 ET

Aterian ( ATER ) shares fell ~2% and Digital Media Solutions ( DMS ) 4% Tuesday pre-market after BTIG downgraded the stocks on expected "choppy" fundamentals.

"We believe fundamentals for both companies will be choppy for the next 2-4 quarters, which will likely keep shares range-bound," BTIG analyst Marvin Fong said in a research report.

Fong lowered the rating to Neutral from Buy for both the companies, keeping the price target at $2.75.

For the consumer products company ATER, the agency believes that the weakening consumer spending is a concern.

For digital performance marketing company DMS, the agency is cautious about the auto insurance ad spend outlook.

The BTIG rating on Aterian aligns with the rating of Seeking Alpha's Quant Rating system that gives to the stock a Hold rating.

SA authors give to the stock a Buy rating, while the sell-side analysts give a Strong Buy rating on an average. The average price target is $2.65.

The sell-side analysts give to the DMS stock a Buy rating on average, with an average price target of $1.92.

However, the Quant Rating system gives to DMS stock a Sell rating.

DMS has decelerating momentum and inferior profitability when compared to other Communication Services stocks, according to Quant.

The company's gross profit margin is 15.43%, while the communication services sector median is 49.63%.

For further details see: