Citi analyst Ashwin Shirvaikar has maintained their neutral stance on TWKS stock, giving a Hold rating yesterday.
Ashwin Shirvaikar’s Hold rating on Thoughtworks Holding’s stock is a result of a number of contributing factors. Thoughtworks managed to exceed expectations in its recent quarter, with both revenue and EBITDA surpassing predictions. However, the company also narrowed its revenue and EBITDA margin outlook for 2023 to the lower-end of the prior range, whilst minimally raising EPS. It appears that whilst there are fewer clients pausing or reducing projects, and budget pressures are easing for some, decision-making is still being delayed.
In addition, Thoughtworks provided insight into 2024, which suggests a stabilization of sequential revenue into the first quarter, followed by modest sequential growth for the remainder of the year. Despite the company’s investments in sales and marketing, as well as its restructuring into a more centralized operational model, Shirvaikar believes that the recovery of growth is likely to be slow, barely growing in 2024. As a result, he prefers to maintain a neutral stance until more consistent signs of growth acceleration become evident.
In another report released yesterday, TD Cowen also maintained a Hold rating on the stock with a $5.00 price target.
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Thoughtworks Holding (TWKS) Company Description:
Thoughtworks Holding Inc is a global technology consultancy that integrates strategy, design and software engineering to enable enterprises and technology disruptors across the globe to thrive as modern digital businesses.
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