Cardlytics (CDLX) shares were up over 26% in recent Wednesday trading after Citron Research said it believes the advertising platform operator has the resources to rebuild and see its stock rise from current levels.

The company uses digital channels of financial institutions to connect advertisers with consumers through transactional data insights for the delivery of targeted marketing offers. Cardlytics is expanding beyond banking apps to deliver purchase-based offers across various apps, websites, and retail networks, Citron said. A partnership deal with DoorDash (DOOR), or Uber Technologies (UBER) could "instantly rerate the stock," potentially doubling or tripling the company's share price, according to the note.

Cardlytics's AI and machine learning capabilities have the potential to drive response rates of 15% to 20%, exceeding the industry average for digital campaigns. Automation also reduces the need for human campaign management and supports costs, which could help scale outreach with better margins, according to Citron.

Citron Research said it believes the stock is positioned to reach a price of $10 per share, which could happen "with one simple announcement."

Price: 2.64, Change: +0.55, Percent Change: +26.08