Analysts at KeyBanc Capital Markets and SunTrust Robinson Humphrey lowered ratings on Criteo stock. The downgrade followed news of Alphabet’s Google considering changes to its policies on third-party advertisements. Criteo works with internet retailers to offer personalized online display advertisements.
An AdWeek story reported that Google is considering changes to the way it handles third-party ads in Chrome browser and its Google Marketing Platform. No official statement has been made by Google yet, regarding the report.
KeyBanc's analyst Andy Hargreaves indicated that if Google becomes more restrictive of third-party tracking in Chrome browser, Criteo could be hit by a “massive disruption”. Hargreaves lowered his rating on the stock to sector weight from overweight.
SunTrust's Matthew Thornton suggested that Chrome probably contributes half of Criteo's revenue. He cited "uncertainty" around Google's plans as a factor behind his decision to downgrade Criteo stock to hold from buy. He also slashed his price target to $24 from $32.