TMV: Cost Discipline And Margin Resilience Will Support Future Share Price Upside

Analysts have reduced their price target on TeamViewer from EUR 14 to EUR 11, reflecting slightly softer assumptions for long term revenue growth, profit margins and valuation multiples.

Analyst Commentary

Recent commentary highlights a more cautious stance on TeamViewer, with price targets adjusted downward to reflect moderated expectations for growth and profitability. Analysts now see a more balanced risk reward profile, with valuation more closely aligned to near term execution risks.

Bullish Takeaways

• Bullish analysts note that the revised price target still assumes stable mid term revenue growth, reflecting confidence in TeamViewer's core remote connectivity franchise.
• Despite the cut, the maintained neutral rating suggests the current valuation already discounts a significant portion of recent operational and macro headwinds.
• There is an expectation that continued cost discipline and margin protection efforts could support earnings resilience, even if top line growth moderates.
• Analysts highlight that a clearer capital allocation framework and disciplined investment approach could provide upside to the new target if execution improves.

Bearish Takeaways

• Bearish analysts view the lower price target as evidence that previous growth assumptions were too optimistic, particularly around upselling and new customer acquisition.
• Concerns persist that competitive pressures and slower enterprise demand could cap pricing power, limiting margin expansion and justifying a lower valuation multiple.
• Execution risks around product innovation and go to market efficiency are seen as elevated, reducing visibility on a return to higher growth trajectories.
• The neutral rating, combined with a reduced target, indicates limited near term catalysts, with upside seen as contingent on clearer proof of sustainable reacceleration.

What's in the News

• TeamViewer unveiled Tia, an autonomous multi agent AI for proactive IT issue detection, remediation, and prevention. It is integrated into TeamViewer ONE to automate routine support and enhance system stability (Key Developments).
• The company launched Agentless Access for its Tensor platform, enabling secure remote work on industrial and OT systems without software installation on each device. This is intended to strengthen cybersecurity and compliance in connected factories (Key Developments).
• TeamViewer reported rapid adoption of its AI features, with more than 270,000 IT support sessions automatically summarized and material gains in documentation time savings and issue resolution speed among roughly 10,000 customers (Key Developments).
• TeamViewer confirmed its 2025 revenue guidance of EUR 778 million to EUR 797 million. The company indicated it expects to land at the lower end of the range despite an ARR shortfall (Key Developments).
• For 2026, the company cut its revenue growth outlook to 2% to 6%, guiding to EUR 790 million to EUR 825 million. This is down from a previous target range of EUR 850 million to EUR 870 million (Key Developments).

Valuation Changes

• Fair Value: reduced modestly from €11.30 to €10.56, reflecting slightly softer long term assumptions.
• Discount Rate: edged up marginally from 8.90% to 8.91%, indicating a very small increase in perceived risk.
• Revenue Growth: trimmed slightly from 7.18% to 7.15%, signaling a minor downgrade to long term growth expectations.
• Net Profit Margin: lowered slightly from 20.00% to 19.91%, pointing to a small anticipated pressure on profitability.
• Future P/E: decreased from 12.90x to 12.12x, implying a modest derating of the medium term valuation multiple.