Analyst David Koning of Robert W. Baird maintained a Buy rating on Thoughtworks Holding (TWKS – Research Report), with a price target of $6.00.
David Koning has given his Buy rating due to a combination of factors including the anticipation of Thoughtworks Holding’s Q4 revenue and EPS aligning with consensus expectations and the solid guidance projected for 2024. Koning finds the company’s prospects attractive based on its potential to return to a long-term revenue growth of approximately 15-20%. He also sees the possibility of the company achieving around $0.60 in EPS by 2026, which could significantly increase the stock’s value given a projected 25X+ next twelve months (NTM) earnings multiple.
The analyst’s optimism is further supported by early indications of demand stabilization within the company, and a potential upside to the 2025 EPS estimates. Thoughtworks’ strategic cost savings plan, which aims to contribute roughly 7% to margins, could drive further profitability improvements. Koning’s analysis suggests that with these factors in play, Thoughtworks’ stock could reach or exceed $15 by late 2025, considering the industry’s current NTM P/E multiples and the company’s potential growth trajectory.
According to TipRanks, Koning is a 4-star analyst with an average return of 3.8% and a 59.84% success rate. Koning covers the Technology sector, focusing on stocks such as Accenture, Toast Inc, and Fiserv.
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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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