In the current market environment, we see debates around the overall macroeconomic impact on digital advertising, the pace/cadence of 3P redeemer additions and the impact of the Walmart partnership as being the biggest potential drivers to upside/downside volatility in the coming year,” analysts wrote.

Simultaneously, JMP Securities analysts also assumed coverage on IBTA, with a Market Outperform rating and a $130 price target. The investment firm believes that the technology company is transforming the CPG promotion industry with the Ibotta Performance Network.

Their positive outlook is driven by Ibotta's growing scale, encompassing over 2,400 CPG brands, 850 retail partners, and exposure to over 200 million consumers. They believe that increased consumer reach will attract more brands, enhance coverage, and draw in more merchants.

“With high unit economics and an ~$200B opportunity within the CPG category, we believe Ibotta can drive significant free cash flow for shareholders,” the JMP team noted.

Analysts at Citi Research started coverage on IBTA as well, rating it as a Buy and assigning a target price of $120.

The Wall Street firm views the company as the leader in digital promotions with 4x the digital promotions of its nearest competitor and a 7x ROAS for its CPG partners, and believes it is well-positioned for further growth with expanding retailer networks and potential for greater brand penetration.