NTG Clarity Networks (NCI – Research Report), the Technology sector company, was revisited by a Wall Street analyst yesterday. Analyst Aravinda Galappatthige from Canaccord Genuity maintained a Buy rating on the stock and has a C$3.25 price target.
Aravinda Galappatthige has given his Buy rating due to a combination of factors that highlight NTG Clarity Networks’ promising outlook. The company has projected a revenue of approximately $75 million for 2025, which aligns closely with the analyst’s expectations. Although the adjusted EBITDA margins are slightly below the anticipated 20.7%, ranging between 16-20%, this is attributed to the company’s ongoing capacity expansion efforts.
NTG Clarity Networks is actively expanding its operations, notably increasing its capacity in Egypt and enhancing its sales team in Saudi Arabia to meet rising demand. The company’s strong backlog of $105 million, with $80 million secured through three-year contracts, indicates a positive future revenue trajectory. Despite the slight variance in EBITDA margins, the company’s strategic moves and robust backlog support the Buy rating, with a target price maintained at $3.25 per share.
According to TipRanks, Galappatthige is an analyst with an average return of -0.5% and a 47.64% success rate. Galappatthige covers the Communication Services sector, focusing on stocks such as Telus, Rogers Communication, and Cineplex.