Shares of Cardlytics, Inc. ( CDLX ) are rising on Wednesday after a research firm published a glowing report on the company, which partners with retail outlets and banks to offer cash-back rewards on card purchases.

What To Know: Following a positive five-page report from Citron Research on Wednesday, Cardlytics ( CDLX ) shares jumped as much as 25%, according to Benzinga Pro.

Citron’s report highlights a significant rewards rollout from American Express, one of Cardlytics’s major partners. The firm said AmEx recently added “over $3,500 in annual credits across hotels, dining, lifestyle, and travel brands,” all of which require data that Cardlytics ( CDLX ) provides. This signals that banks are doubling down on loyalty and discount ecosystems as competitive drivers, Citron said.

Cardlytics ( CDLX ) shares are down about 97% over the past five years. The massive drawdown is part of Citron’s bullish thesis. The firm doesn’t expect the stock to return to $100, but believes it can reach $10 easily.

“This is one of the few companies that can double or triple with one simple announcement,” Citron said.

The research firm also believes Cardlytics ( CDLX ) is well-positioned to provide first-party data since major data players like Google and Meta are phasing out cookies, which have been used traditionally to track users’ internet activity. Citron noted that Cardlytics ( CDLX ) is prepared to take on the growing retail media market, which Nielsen has projected to be worth $100 billion by 2028.

CDLX Price Action: Cardlytics ( CDLX ) shares were up 15.83%, trading at $2.42 at the time of publication Wednesday, according to Benzinga Pro.

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