Needham starts AgileThought with 'buy', cites diverse revenue base

AgileThought

04/10/2022 14:37

** Needham begins coverage of Tech solutions firm
AgileThought Inc  AGIL.O  with "buy", says growth and margins
set to improve
    ** Brokerage expects AGIL's growth to be focused on U.S.
clients and sees co benefiting from the expansion in the digital
transformation market
    ** Expects AGIL to further reduce its leverage by steadily
improving free cash flow generation 
    ** AGIL's discounted valuation is an attractive entry point
- Needham; establishes PT at $7, in line with median PT, as per
Refinitiv 
    ** Brokerage believes that AGIL's diverse revenue base
provides insulation from short-term industry headwinds, expects
co to hire more in keeping with growth and margin expansion
    ** Up to Monday's close, stock had fallen ~13% YTD compared
with a ~31% decline in the Nasdaq composite index  .IXIC 
 (Reporting by Johann M Cherian in Bengaluru)
 ((johann.mcherian@thomsonreuters.com;))