TechTarget (NASDAQ:TTGT) shares fell sharply by 6% to $7.21 in premarket trading today following a significant downgrade by J.P. Morgan.
The investment bank cut its rating on the B2B technology marketing and data company's stock to "underweight" from "neutral" and drastically reduced its price target to a Wall Street low of $8 from $18.
J.P. Morgan's analysts expressed a pessimistic near-term outlook for TechTarget, citing concerns over weak revenue visibility, the potential for goodwill impairment, and doubts about the company's ability to achieve consistent growth starting in the third quarter of 2025.
"We do not see TTGT as having attractive near-term investment characteristics," the brokerage stated.
This downgrade comes despite TechTarget's Q1 2025 revenue exceeding expectations, though the company reported an EPS miss for the same period.
According to data compiled by LSEG, two of the three brokerages covering TechTarget currently rate the stock "buy" or higher, while one rates it "sell" or lower.
The median price target among analysts stands at $15, significantly higher than J.P. Morgan's revised target.