William Blair analyst Arjun Bhatia has maintained their bullish stance on THRY stock, giving a Buy rating yesterday.
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Arjun Bhatia has given his Buy rating due to a combination of factors that suggest potential upside for Thryv Holdings despite recent challenges. The company experienced a difficult quarter with its SaaS revenue falling short of expectations and a reduction in full-year guidance. Internal execution issues, particularly in the core SaaS business and the Keap acquisition, have led to slower growth and higher churn rates. However, management remains optimistic about future growth, particularly with plans to enable Keap partners and transition more effectively to a SaaS model.
Despite these challenges, the stock is trading at low multiples, which limits the downside risk. Thryv’s shares are valued at under 10 times EBITDA, and even when considering the debt and pension liabilities, the valuation appears attractive. The company’s legacy business is still expected to contribute significantly to EBITDA, providing a cushion against current headwinds. These factors collectively underpin Arjun Bhatia’s Buy rating, as the potential for recovery and growth in the long term remains plausible.
Bhatia covers the Technology sector, focusing on stocks such as Atlassian, Sprout Social, and Zoom Video Communications. According to TipRanks, Bhatia has an average return of 0.9% and a 42.69% success rate on recommended stocks.
In another report released yesterday, B. Riley Securities also maintained a Buy rating on the stock with a $15.00 price target.