William Blair Initiates Coverage On AgileThought

William Blair initiated research coverage of AgileThought Inc AGIL, a digital transformation and agile software development service provider for Fortune 1,000 customers, with an Outperform rating.
The company has several delivery centers in Mexico, Brazil, Argentina, Costa Rica, and the U.S.
Analyst Maggie Nolan believes the company can generate double-digit revenue growth and expanding margins to drive double-digit organic EPS growth annually and positive free cash flow over the long term.
Nolan estimates AgileThought to record revenue of $159 million in 2021 and $190 million in 2022.
She expects AgileThought to benefit from exposure to Latin America, a nearshore and culturally compatible region to the primary client market, the U.S.
Nolan believes conditions are set for agile IT service providers like AgileThought to benefit from robust secular demand for digital transformation services and increasingly nearshore delivery, particularly in Latin America and Mexico.
The company's accelerating commercial momentum-focused strategic objectives, and blue-chip solid client base, in addition to favorable macro trends, provide ample long-term opportunities for growth, Nolan adds.
Price Action: AGIL shares closed higher by 1.77% at $8.64 on Tuesday.