Expert Outlook: Thoughtworks Holding Through The Eyes Of 4 Analysts

Throughout the last three months, 4 analysts have evaluated Thoughtworks Holding TWKS, offering a diverse set of opinions from bullish to bearish.

Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.

Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $3.41, with a high estimate of $5.00 and a low estimate of $2.50. A negative shift in sentiment is evident as analysts have decreased the average price target by 27.29%.

Deciphering Analyst Ratings: An In-Depth Analysis

The analysis of recent analyst actions sheds light on the perception of Thoughtworks Holding by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Thoughtworks Holding. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Analysts unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into expectations for the relative performance of Thoughtworks Holding compared to the broader market.
• Price Targets: Delving into movements, analysts provide estimates for the future value of Thoughtworks Holding's stock. This analysis reveals shifts in analysts' expectations over time.

For valuable insights into Thoughtworks Holding's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.

Stay up to date on Thoughtworks Holding analyst ratings.

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Unveiling the Story Behind Thoughtworks Holding

Thoughtworks Holding Inc is a global technology consultancy that integrates strategy, design, and software engineering to enable enterprises and technology disruptors across the globe to thrive as modern digital businesses. Its global service lines include Enterprise Modernization, Platforms and Cloud; Customer Experience, Product and Design; Data and Artificial Intelligence (AI), and Digital Transformation and Operations. Geographically, it derives a majority of its revenue from North America and also has a presence in APAC; Europe, and LATAM.

A Deep Dive into Thoughtworks Holding's Financials

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

Revenue Challenges: Thoughtworks Holding's revenue growth over 3 months faced difficulties. As of 31 December, 2023, the company experienced a decline of approximately -18.78%. This indicates a decrease in top-line earnings. When compared to others in the Information Technology sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: Thoughtworks Holding's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of -8.89%, the company may face hurdles in effective cost management.

Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of -2.89%, the company may need to address challenges in generating satisfactory returns for shareholders.

Return on Assets (ROA): Thoughtworks Holding's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of -1.7%, the company may face hurdles in achieving optimal financial performance.

Debt Management: Thoughtworks Holding's debt-to-equity ratio is below the industry average. With a ratio of 0.44, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

What Are Analyst Ratings?

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

This article was generated by Benzinga's automated content engine and reviewed by an editor.