Analyst Adam Wood of Morgan Stanley maintained a Hold rating on SoftwareOne Holding Ltd., retaining the price target of CHF8.20.
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Adam Wood has given his Hold rating due to a combination of factors affecting SoftwareOne Holding Ltd. The company reported a decline in revenue for the second quarter of 2025, with a year-over-year decrease of 4.3% in constant currency terms. This decline was primarily driven by significant negative growth in the North American region, although the Asia-Pacific region showed positive growth. Despite new leadership and turnaround efforts in North America, the management has adopted a cautious outlook for the second half of the year, citing macroeconomic uncertainties and challenges in achieving a successful turnaround.
Furthermore, the company’s guidance for fiscal year 2025 has been revised downward, indicating flat growth in constant currency terms when combined with Crayon. This adjustment suggests a return to low-to-mid single-digit growth, which aligns with current consensus expectations for SoftwareOne but falls short of expectations for Crayon. Additionally, there is potential for disappointment regarding the adjusted EBITDA margin guidance, which is expected to remain stable at around 20% on a combined basis. Overall, despite meeting second-quarter expectations, the lowered guidance for fiscal year 2025 is anticipated to negatively impact the stock, leading to a Hold rating.
In another report released on August 22, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a CHF7.50 price target.