Should you sell your NTG Clarity Networks stock?

Beacon Securities analyst Doug Cooper maintained a “Buy” rating on NTG Clarity Networks (NTG Clarity Networks Stock Quote, Chart, News, Analysts, Financials TSXV:NCI), but lowered his target to $2.75 from $3.75, saying the company’s strongest quarter of the year has been overshadowed by geopolitical concerns.

In his April 28 note, Cooper said NTG’s fourth-quarter results beat Street estimates, with revenue up 39% year-over-year to $23.9-million and up 14% sequentially. Full-year revenue rose 49% to $83.4-million, led by offshoring growth of about 120% and software revenue growth of 180% to $9.4-million.

Gross margin improved to 38.7% in the fourth quarter, the highest level of the year, while EBITDA margin reached 15.7%. Cooper said the quarter showed operating leverage, with incremental revenue versus the third quarter dropping to EBITDA at a 32% margin.

Cooper said NTG’s fiscal 2026 guidance of more than $90-million in revenue and a 13% to 16% EBITDA margin may prove conservative given its backlog of about $88-million and history of expanding work with existing clients.

He said the key questions are whether Saudi Arabia keeps spending, whether NTG can secure more contract wins and whether it can collect its $29-million in accounts receivable. Cooper noted no contracts have been cancelled or deferred.

“Valuation is remarkably inexpensive,” Cooper said, noting the stock trades at less than 4x his fiscal 2026 EBITDA estimate and under 6x earnings, with a net cash position and free cash flow generation.

Cooper now forecasts fiscal 2026 revenue of $90-million and EBITDA of $12.6-million, down from $94.5-million and $17-million previously.

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