NTG Clarity Networks: Strong Q1 2025 Performance and Strategic Growth in Saudi Arabia Underpin Buy Rating

Analyst Aravinda Galappatthige of Canaccord Genuity maintained a Buy rating on NTG Clarity Networks (NCI – Research Report), boosting the price target to C$3.30.

Aravinda Galappatthige has given his Buy rating due to a combination of factors that highlight NTG Clarity Networks’ strong performance and future potential. The company reported a significant revenue increase of 68% in Q1 2025, surpassing expectations, primarily driven by robust growth in Saudi Arabia. This growth is attributed to a surge in contract wins, which positions the company well for continued success.
Additionally, NTG Clarity Networks has increased its revenue guidance for 2025, reflecting confidence in its ability to maintain momentum. Despite a slight dip in adjusted EBITDA due to increased expenses related to capacity expansion, the company’s financial position remains strong with a near net cash balance sheet. The substantial backlog of contracts further supports the positive outlook, providing visibility and potential upside for future performance. These factors, combined with the company’s strategic positioning in the Saudi market under Vision 2030, underpin Galappatthige’s Buy rating.

Galappatthige covers the Communication Services sector, focusing on stocks such as VerticalScope Holdings, Telus, and Cogeco Communications. According to TipRanks, Galappatthige has an average return of -0.1% and a 49.80% success rate on recommended stocks.