LIND RESEARCH
The Street Starts to Agree: Two Broker Upgrades Follow Our Truecaller Turn
DNB Carnegie raised its Truecaller target to SEK 28 (from SEK 26) and reiterated Buy.
SEB upgraded Truecaller from Hold to Buy and lifted its target to SEK 16 (from SEK 13), arguing that the worst is over in the advertising business.
Both calls follow the removal of the Google ad flag and our June 17 note turning cautiously optimistic. Truecaller shares are up roughly 10% since that note.
The India real-money gaming ad ban still weighs, so only one of the two ad headwinds has cleared; the July 17 Q2 report is the first real read.
If the turnaround executes, these upgrades are the first of many, not the last.
Treucallers share price has seen a rather sharp rebound over the past few days as two brokers moved more positively on the name. DNB Carnegie raised its target to SEK 28 from SEK 26 and reiterated Buy. SEB upgraded the stock from Hold to Buy and lifted its target to SEK 16 from SEK 13, arguing the worst is over in the advertising business. Both calls land after our June 17 note, in which we turned cautiously optimistic about the removal of the Google ad flag. The shares are up roughly 10% since.
We called the flag removal a genuine positive when the news broke, and the sell side is now catching up. The recovery math, though, is still unwritten. India's real-money gaming ad ban still weighs on the largest market, so only one of the two ad headwinds has cleared. The July 17 Q2 report is the first read on whether flag removal becomes a sequential ad inflection or stays a "limited" footnote. If the turnaround executes, these upgrades are the first of many, not the last.
We are unlocking our full Truecaller note for free for the next three days, so everyone can read the work behind the call. Test out premium for only 1$ for 30 days, so you don’t miss out on alpha like this.
Lind Research