NTG Clarity Networks is a buy, this analyst says

In a March 31 initiation, Ventum Capital Markets analyst Amr Ezzat launched coverage of NTG Clarity Networks (NTG Clarity Networks Stock Quote, Chart, News, Analysts, Financials TSXV:NCI) with a “Buy” rating and a $2.00 target price, implying roughly 122% upside, saying the company offers differentiated exposure to digital transformation spending in Saudi Arabia.

NTG Clarity, founded in 1992 and headquartered in Markham, Ontario, provides telecommunications engineering, IT services and network infrastructure software.

Ezzat said NTG’s model is distinctive because it combines Egypt-based Arabic-speaking engineering talent with local commercial and delivery operations in Saudi Arabia, where more than 95% of revenue comes from Tier 1 clients in telecom, financial services and government. He said that positioning is difficult to replicate and gives the company a meaningful edge in a market where language, trust and delivery responsiveness matter.

He said the initiation comes at a more complicated point in the story after disappointing third-quarter 2025 results, when management lowered its EBITDA margin guidance after hiring ahead of contract signings that took longer than expected to close. Still, Ezzat said he does not believe the quarter changed the broader demand backdrop or NTG’s strategic position. “With expectations now recalibrated, we believe the stock is better positioned to reflect a more balanced underwriting of both the near-term execution risk and the longer-term opportunity,” he said.

In Ezzat’s view, the key issue is whether the third quarter reflected a temporary mismatch between delivery capacity and revenue conversion or a more structural forecasting problem. He said he leans toward the former, noting management maintained its revenue outlook and pointed to a meaningful backlog and active pipeline. If backlog conversion improves and recently added capacity is absorbed, he said current earnings pressure should prove temporary.

Ezzat also pointed to NTG’s embedded relationships with large clients, its founder-led structure and insider ownership, and the longer-term potential of NTGapps, which he sees as a medium-term upside lever rather than a near-term catalyst. He said the company’s Egypt-based delivery engine and Saudi presence should support operating leverage over time as utilization improves.

Ezzat said the company should generate Adjusted EBITDA of $10.3-million on revenue of $78.7-million in fiscal 2025, improving to Adjusted EBITDA of $11.5-million on revenue of $87.0-million in fiscal 2026. He said his $2.00 target is based on a discounted cash flow model using a 15% discount rate and 3% terminal growth.

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