We initiate on TTGT at Strong Buy / $83 PT. TechTarget provides marketing & sales intelligence for enterprise technology vendors via a proprietary content & data platform for purchase intent, lead qualification & virtual engagement.
After recent volatility, the firm is at an inflection with Informa Tech Digital integration recasting the revenue base and magnifying core platform momentum. With market attention lingering on soft organic trend and cyclical demand, our checks suggest consensus underestimates magnitude & immediacy of the $335mn ann. run-rate Informa revenue flow-through inc. FY25.
Our estimates include $586.7mn in FY25E sales, driven by lift from the acquisition and a broad organic reversion to trend which the street has materially discounted. At 1.39x FY25E EV/Sales, TTGT trades below historical median and below less differentiated peers, despite highly recurrent gross margin profile and demonstrable operational leverage.
A warranted 4.2x multiple (syn. & risk adjusted) leaves room for re-rating as integration risk, while real, is embedded in both our estimates and discount rate. With management increasingly confident in demand normalization and AI-enabled productivity tailwinds, we see an asymmetric setup for material multiple & earnings recovery.
Execution risk is outweighed by transformational revenue step-up and reversion to mean valuation, so R/R is compelling from current levels.
Margin durability and operating leverage crystallize the path to earnings recovery for TTGT.
We see TechTarget’s acquisition of Informa Tech Digital as a true structural inflection point for the company’s revenue trajectory—one that is chronically underappreciated by the market as both significant and immediate.