William Blair analyst Arjun Bhatia has maintained their bullish stance on THRY stock, giving a Buy rating yesterday.
Arjun Bhatia has given his Buy rating due to a combination of factors that highlight Thryv Holdings’ potential for growth and value. The company’s SaaS revenue showed a positive trend, with a notable increase driven by the Keap acquisition, and excluding this, the growth was still substantial at 23%. Although there was a slowdown in new customer additions, this was attributed to seasonal factors, and the net revenue retention rate remained strong at 98%, indicating customer stability. The SaaS segment’s EBITDA margin of 16.6% supports a Rule of 40 profile, suggesting a healthy balance between growth and profitability.
Furthermore, the guidance for 2025 indicates a promising outlook with expected SaaS revenue growth of 18%-20%, and an EBITDA margin that surpasses expectations by 100 basis points. The management’s commitment to transitioning away from legacy services by 2028, coupled with the expectation that SaaS will become the primary EBITDA driver by 2026, underscores the long-term potential for margin improvement. The stock is considered undervalued and underappreciated, making it an attractive investment opportunity at current levels.
In another report released yesterday, Needham also reiterated a Buy rating on the stock with a $28.00 price target.