Analysts have revised TeamViewer's fair value estimate downward from €15.16 to €12.81. This adjustment reflects a tempered outlook on growth and profit margins, despite recent upgrades in price targets from major firms.

Analyst Commentary

Recent Street research provides a mix of optimism and caution regarding TeamViewer's outlook, with major institutions revising their stance and price targets following company updates. Below is a summary of their perspectives.

• Bullish analysts highlight the company's attractive valuation at current price levels, describing it as "irresistibly inexpensive" and suggesting limited downside risk.
• Some have moved to more positive ratings, reflecting increased confidence in near-term performance and potential for upside if execution improves.
• Price targets have been revised upward. Major firms such as JPMorgan now expect levels up to EUR 15, and others see EUR 16.30, signaling improved sentiment on growth potential.
• There is recognition of the company's capacity to maintain or even expand market share in key segments if management capitalizes effectively on opportunities.

• Bearish analysts express concerns over the sustainability of margins, pointing to uncertainty around the company’s ability to consistently deliver profitable growth.
• The tempered fair value estimate adjustment reflects skepticism about the scale and speed of the company's growth trajectory.
• Continued neutral ratings from some major firms indicate reservations about execution risks and the pace of operational improvements.

What's in the News

• TeamViewer introduces integration of Digital Employee Experience (DEX), Remote Connectivity, and AI features with Salesforce's Agentforce IT Service, aiming to enhance IT support and automation. (Key Developments)
• DEX now automatically monitors endpoints and applications, fixes common workplace disruptions in real time, and reduces time lost to IT troubleshooting. (Key Developments)
• New features such as Session Insights and CoPilot provide automatic documentation, step-by-step resolution records, and AI-driven troubleshooting suggestions, streamlining IT service workflows. (Key Developments)
• TeamViewer’s integration with Salesforce enables agents to securely access and resolve issues on IT and OT devices remotely, with records captured for auditability and future reference. (Key Developments)

Valuation Changes

• The Fair Value Estimate has fallen significantly from €15.16 to €12.81, reflecting a more cautious outlook on the company's prospects.
• The Discount Rate has risen slightly from 7.87% to 8.53%, indicating an increased perception of risk in future cash flows.
• The Revenue Growth forecast has decreased from 9.93% to 8.03%, suggesting expectations for a slower expansion rate.
• The Net Profit Margin projection has edged down from 21.15% to 19.78%, signaling softened expectations for ongoing profitability.
• The future P/E ratio estimate has declined modestly from 14.50x to 13.66x, which is in line with lower earnings and growth assumptions.