Lake Street upgraded PubMatic (PUBM) to Buy from Hold, citing stronger-than-expected Q4 performance and improved programmatic ad demand. The move signals growing confidence in the company’s revenue trajectory and market positioning.
- Lake Street upgraded PubMatic (PUBM) to Buy from Hold
- Q4 revenue: $138 million, up 9% YoY
- Platform revenue: $94 million, up 14% YoY
- Adjusted EBITDA: $32 million, exceeding expectations
- Full-year 2026 revenue forecast raised to $560 million
- PUBM shares rose 4.5% in pre-market trading
PubMatic (PUBM) has received a positive catalyst after Lake Street upgraded its stock rating to Buy from Hold, reflecting a strategic shift in analyst outlook. The firm highlighted a resilient digital advertising environment and PubMatic’s expanding footprint in real-time bidding and header bidding technologies as key drivers of the upgrade. The upgrade follows PubMatic’s recently reported fourth-quarter results, which showed total revenue of $138 million, a 9% year-over-year increase, with platform revenue growing 14% to $94 million. Adjusted EBITDA reached $32 million, surpassing internal projections and demonstrating improved operating efficiency. These metrics suggest the company is gaining traction in the competitive digital ad ecosystem, particularly among publishers seeking higher yield solutions. Market reaction has been immediate, with PUBM shares rising 4.5% in pre-market trading. The upgrade is expected to influence institutional and retail investor positioning, potentially boosting trading volume. Other digital advertising technology firms, including Magnite and OpenX, may see indirect attention as investors reassess sector-wide valuations. Lake Street’s Buy recommendation is based on PubMatic’s ability to scale its OpenX-powered ad marketplace, its focus on AI-driven yield optimization, and a strengthened balance sheet. The firm now forecasts full-year 2026 revenue of $560 million, up from a previous $540 million estimate.