TechTarget (TTGT) shares plummeted 7.63% in Tuesday's trading session, as investors reacted to a significant price target cut by Needham analyst Joshua Reilly. The analyst, while maintaining a Buy rating on the stock, lowered the price forecast from $40.00 to $25.00, citing macroeconomic headwinds and potential sales and marketing downturns.

The revised outlook reflects growing concerns about TechTarget's near-term prospects. Reilly expects the company to align its FY25 guidance with consensus estimates, projecting revenue of $512 million (3.4% adjusted Y/Y growth) and adjusted EBITDA of $98 million. Management is likely to remain cautious due to the challenging economic environment in early 2025.

Despite the bearish sentiment, TechTarget's unique B2B purchase intent marketing platform continues to be a strength. The company leverages first-party, privacy-compliant data from over 150 online properties. Growth drivers include expanding its total addressable market beyond marketing teams and increased first-party data from the BrightTALK acquisition for cross-selling. However, investors seem to be focusing on the near-term challenges, leading to the sharp stock decline. The market will be closely watching TechTarget's upcoming earnings report for further clarity on its integration progress with Informa Tech and the realization of promised cost synergies.