Thryv Holdings: Undervalued Growth Potential with Strong SaaS Expansion and Attractive Risk/Reward Profile

William Blair analyst Arjun Bhatia has maintained their bullish stance on THRY stock, giving a Buy rating on June 2.

Arjun Bhatia has given his Buy rating due to a combination of factors that highlight Thryv Holdings’ potential for growth and undervaluation. The company is expected to benefit from cross-selling opportunities and the expansion of vertical solutions through Keap, which are anticipated to drive significant growth. Additionally, Thryv’s shift in sales incentives towards monthly recurring revenue is likely to enhance its financial performance.
Moreover, Thryv’s customer base is largely nondiscretionary, providing some insulation from broader economic challenges. The company also has sufficient cash flow to manage its debt obligations effectively. Despite the burdens of debt and pension liabilities, Thryv is trading at a low valuation compared to its peers, especially considering its projected growth rate. As the SaaS segment becomes more prominent in Thryv’s financial results, investor awareness is expected to increase, leading to higher growth estimates and a potential rerating of the stock. The attractive risk/reward profile at current levels supports the Buy recommendation.

Based on the recent corporate insider activity of 48 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of THRY in relation to earlier this year.