Piper cuts Thoughtworks to Neutral as persistent headwinds pressure 2023 growth

As previously reported, Piper Sandler analyst Arvind Ramnani downgraded Thoughtworks to Neutral from Overweight with a price target of $9.50, down from $14. The analyst notes the company delivered upside to Q3 expectations driven by better execution and healthy demand, particularly from Tech & business services and Auto, travel and transport. However, Thoughtworks lowered Q4 guidance driven by macro headwinds that could persist into 2023. With mid-point of revenue Q4 guide decelerating to 6.7% year-over-year from 23.1% year-over-year implied guide during last earnings call, revenue momentum is subdued, Ramnani adds.