BMO Capital analyst Thanos Moschopoulos maintained a Hold rating on Thinkific Labs (THNC – Research Report) today and set a price target of C$3.50.
Thanos Moschopoulos has given his Hold rating due to a combination of factors related to Thinkific Labs’ recent performance and strategic direction. The company’s Q4/24 results were approximately in line with expectations, but the guidance for Q1/25 fell short of consensus, as the company is shifting its focus towards larger, more established customers. This strategic transition is anticipated to impact the business in the short term, although it may lead to improved revenue growth and profitability in the future.
Despite the stock’s current valuation being considered reasonable, Moschopoulos is cautious and prefers to see stronger subscription revenue growth before adopting a more positive stance. While the company has shown strong growth in certain areas, such as commerce revenue, the overall SaaS revenue growth remains a concern. The analyst also notes that the company’s efforts to penetrate the payments market could face limitations, further justifying the Hold rating.
Moschopoulos covers the Technology sector, focusing on stocks such as Celestica, CGI, and Open Text. According to TipRanks, Moschopoulos has an average return of 16.3% and a 59.70% success rate on recommended stocks.