Benchmark on Friday raised its target price for LiveRamp Holdings Inc. (NYSE: RAMP) to $40.00 from $38.00 and left its rating on the stock at Buy. The updated target implies notable upside from LiveRamp's recent share price of $23.06, with InvestingPro data showing the shares trade well below their Fair Value.
The firm pointed to LiveRamp's steady bookings and a healthy outlook as central to the decision to increase the target. Benchmark also highlighted consistent operating leverage and continued share buyback activity as contributors to its more favorable stance.
Benchmark said it is growing more confident that LiveRamp will achieve revenue growth in excess of 10% in fiscal year 2027, noting there are three primary drivers that underpin that expectation. The research house adjusted its estimates upward, a change that directly led to the price target move from $38 to $40 while the Buy recommendation was reaffirmed.
LiveRamp's latest quarterly results helped support the analyst optimism. For the third quarter of fiscal 2026, the company reported earnings per share of $0.76, ahead of the consensus estimate of $0.68 and representing an EPS surprise of 11.76%. Revenue was reported at $212 million against an expectation of $211.55 million, reflecting roughly 9% year-over-year growth.
Other brokerages maintained constructive positions as well. Evercore ISI reiterated an Outperform rating and kept a $37.00 price target, citing operating income that exceeded the firm's guidance. Susquehanna kept a Positive rating with a $50.00 price target, pointing to strong execution and continued sales momentum during the quarter.
Those analyst actions underscore confidence in LiveRamp's recent performance, even as the stock experienced declines during aftermarket trading. Observers have emphasized the company's ability to slightly outpace revenue expectations while delivering a materially larger EPS beat for the quarter.
Analysis and context
Benchmark's upgrade of the price target reflects a combination of upward estimate revisions and qualitative factors the firm highlighted, including a reinforcing mix of operating leverage and shareholder-return activity. The expectation of more than 10% revenue growth in fiscal 2027 is now a central plank of Benchmark's bullish view, supported internally by three identified growth drivers.
Meanwhile, peer analyst notes from Evercore ISI and Susquehanna affirm that the quarter's results met or exceeded key internal metrics such as operating income and execution on sales, contributing to an overall market narrative of improved operational performance for the period.
What this means for investors
- Benchmark's revised target increases the perceived upside relative to the current share price, reinforcing a Buy stance.
- Quarterly results showed an EPS beat and modest revenue outperformance, which multiple brokerages cited when maintaining or reiterating positive ratings.
- Despite analyst support, shares moved lower in aftermarket trading, indicating some market hesitation even as fundamentals reported for the quarter were solid.
Investors should weigh the combination of analyst optimism, improved quarterly metrics, and current market pricing when assessing the stock.