Analyst Adam Wood of Morgan Stanley maintained a Hold rating on SoftwareOne Holding Ltd. (SWON – Research Report), with a price target of CHF8.90.
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Adam Wood has given his Hold rating due to a combination of factors impacting SoftwareOne Holding Ltd. The company reported first-quarter revenues that were 4% below consensus expectations, primarily due to a weak performance in its Software & Cloud Marketplace division. This underperformance was largely attributed to changes in Microsoft incentives, which negatively affected the transactional business.
Despite the adjusted EBITDA being slightly ahead of expectations, the outlook for the second quarter remains challenging, with revenues expected to decline at a similar rate as the first quarter. The company’s full-year guidance relies heavily on a recovery in the second half, particularly in the North American market, where management has taken steps to address go-to-market issues. However, there is skepticism about the success of these efforts, leading to a cautious stance. Additionally, the lack of new information regarding the anticipated Crayon deal adds to the uncertainty, contributing to the Hold rating.
According to TipRanks, Wood is a 5-star analyst with an average return of 11.6% and a 63.11% success rate.