Scott Berg, an analyst from Needham, reiterated the Buy rating on Thryv Holdings. The associated price target is $14.00.
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Scott Berg has given his Buy rating due to a combination of factors that highlight both challenges and opportunities for Thryv Holdings. Despite the company’s disappointing third-quarter financial results, with SaaS revenues falling short of expectations and adjusted EBITDA below guidance, Berg sees value in the current stock price. The shares have dropped significantly, over 25%, which Berg attributes to a revised outlook on SaaS revenue growth slowing down to single digits by fiscal year 2026 before stabilizing.
However, Berg maintains a positive outlook due to the company’s market segment (MS) revenues exceeding expectations, suggesting a net present value for this segment likely over $50 million. He believes the stock is undervalued, trading at approximately 0.5 times SaaS revenues, which he considers too low for a profitable SaaS segment that continues to grow. Therefore, he reiterates the Buy rating while adjusting the price target to $14 to account for the anticipated slower growth rate in SaaS revenues.