Updated
Updated · Yahoo Finance · Aug 17
Alithya Fair Value Falls 15% to CA$1.45 as Analysts Split on Growth Outlook
Updated
Updated · Yahoo Finance · Aug 17

Alithya Fair Value Falls 15% to CA$1.45 as Analysts Split on Growth Outlook

1 articles · Updated · Yahoo Finance · Aug 17

Summary

  • CA$1.45 is the new fair value estimate for Alithya Group, down from CA$1.70, after a reassessment of growth visibility and valuation assumptions.
  • A 4.06% revenue decline is now assumed versus a prior 0.31% drop, reflecting extended sales cycles, a weak outlook and limited visibility on a return to growth.
  • Analyst targets now span from C$1.15 to C$1.60: Barrington dropped to Market Perform on Aug. 14 and removed its target, while Desjardins and Scotiabank stayed cautious.
  • Valuation inputs also shifted sharply, with the future P/E cut to 2.78x from 6.94x, even as expected net profit margin rose to 11.44% from 6.23%.

Insights

Will Alithya's upcoming September meeting unveil a lucrative buyout, or will extended sales cycles drag the stock down further?
Could the massive drop in Alithya's fair value actually be a hidden buying opportunity before a major strategic merger?