Ventum trims price target on NowVertical

Ventum Capital Markets analyst Rob Goff has lowered his target on NowVertical Group (NowVertical Group Stock Quote, Chart, News, Analysts, Financials TSXV:NOW) while maintaining his “Buy” rating, saying the company’s first quarter showed stabilization and an improving revenue mix.

In a May 28 update, Goff cut his target on NowVertical Group to $0.42 from $0.50.

NowVertical reported Q1 2026 revenue and Adjusted EBITDA of $9.7-million and $1.8-million, respectively, ahead of Goff’s estimates of $9.3-million and $1.4-million and consensus at $9.5-million and $1.3-million.

Revenue was down 6% year-over-year, due to lower Brazil licence and maintenance reselling revenue, but both revenue and Adjusted EBITDA were stable sequentially despite typical first-quarter seasonality in Latin America.

Goff said management continues to shift the business from lower-margin reselling activity toward higher-value Google Cloud and Integration engagements. Google Cloud revenue rose 84% year-over-year to $2.7-million, while Integration revenue was up 58% to $1.9-million.

The company’s Top 30 Strategic Accounts grew about 9% year-over-year and now represent 73% of total revenue, up from 62% in Q1 2025 and 55% in 2024.

“Negative PT but solid quarter,” Goff said. “Our PT reflects tougher valuations.”

Goff’s revised target is based on 5.0 times and 4.1 times his 2026 and 2027 EV/EBITDA estimates, respectively, after he lowered his target multiples.

He maintained his Q2 revenue and Adjusted EBITDA estimates at $9.6-million and $1.4-million, and his 2026 estimates at $39.8-million and $6.0-million.

“We forecast that revenues from strategic accounts will advance ~20% to $30M in 2026, representing 76% of our forecast revenues,” Goff said.

Goff expects NowVertical to generate Adjusted EBITDA of $6.0-million on revenue of $39.8-million in fiscal 2026, improving to Adjusted EBITDA of $7.0-million on revenue of $43.0-million in fiscal 2027.

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