Update shared on 19 Nov 2025
Fair value Decreased 22%Analysts have revised their price target for NTG Clarity Networks downward from $4.15 to $3.23, citing tempered expectations for revenue growth and profitability in their latest assessment.
What's in the News
- Signed a three-year renewable frame agreement with a new government-affiliated IT customer in Saudi Arabia. This agreement allows NTG to provide flexible software development services without a traditional RFP process (Key Developments).
- Received approximately CAD 10.9 million in new purchase orders and contract renewals. This includes CAD 1.4 million from three new IT services customers and CAD 9.5 million from renewals and expansions (Key Developments).
- Several contract renewals include an expanded scope and additional resources, with billing rates increasing by 33 percent compared to prior contract terms (Key Developments).
- Reaffirmed 2025 earnings guidance, with expected revenue of approximately $78 million for the full year (Key Developments).
Valuation Changes
- Consensus Analyst Price Target has decreased from CA$4.15 to CA$3.23, reflecting lower expectations for future valuation.
- Discount Rate has edged down slightly from 7.69% to 7.67%, suggesting a marginally lower perceived risk.
- Revenue Growth forecast has fallen significantly from 22.98% to 18.47% for the period assessed.
- Net Profit Margin estimate has been reduced from 13.11% to 10.76%, indicating tempered profitability projections.
- Future P/E ratio is projected to rise from 13.88x to 17.02x, pointing to higher market valuations relative to future earnings.
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