THNC keeps $4.50 target at ATB Capital

Following in-person meetings with management, ATB Capital analyst Martin Toner likes what he sees from Thinkific Labs (Thinkific Labs Stock Quote, Chart, News, Analysts, Financials TSX:THNC) but not enough to bump him off his “Sector Perform” rating.

The analyst summarized what was discussed at the series of recent meetings.

“On September 4, ATB Capital Markets hosted in-person marketing meetings with CEO Greg Smith and CFO Corinne Hua from Thinkific,” he wrote. “The Company reinforced its expectation that short-term revenue growth will accelerate, driven by commercial revenue and stabilization in paying customers. Longer term, the Company believes there is an opportunity to grow at higher rates and become a rule of 40 company. Discussions focused on the total addressable market (TAM), THNC’s diverse customer base, the impact of AI, the product development pipeline, and partnership opportunities. We continue to believe Thinkific will be a long-term winner as a platform for the burgeoning Creator Economy.”

In a research update to clients September 4, Toner maintained his “Sector Perform” rating and price target of $4.50 on THNC.

The analyst thinks the company will post Adjusted EBITDA of $1.7-million on revenue of $66.9-million in fiscal 2024. He expects Adjusted EBITDA of $4.1-million on a topline of $77.8-million in fiscal 2025.