William Blair initiated research coverage of Thoughtworks Holding, Inc. (TWKS $25.95), an IT consultancy providing end-to-end strategy, software engineering, design, and organizational transformation services.
Analyst Maggie Nolan expects Thoughtworks can generate sustainable organic revenue growth of more than 20% over the next several years. She forecasts the company to report revenue of $1.06 billion in 2021 and $1.27 billion in 2022.
Nolan said, “Thoughtworks is riding the wave of digital transformation, which is the fastest-growing segment of IT services. Demand for digital transformation has been increasing in the wake of COVID-19 and is in the early stages of building. Thoughtworks has best-in-class thought leadership that differentiates the company and underpins its high-value consulting capabilities, drives premium pricing, and positions the company well to capture long-term demand for digital transformation services. With more than 9,000 employees across 17 countries, Thoughtworks possesses notable global scale and diversified delivery locations, keeping the company local to clients wherever they operate. Given the company’s strong positioning, we expect Thoughtworks to remain at the forefront of emerging technology trends and develop new technical capabilities, expanding its addressable market and driving long-term growth.”
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William Blair or an affiliate received compensation for investment banking services or non-investment-banking services from Thoughtworks Holding, Inc. within the last 12 months. Thoughtworks Holding, Inc. is or was, within the last 12 months, an investment banking client of William Blair and/or one or more of its affiliates.
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Current Ratings Distribution (as of 10/10/21)
Outperform (Buy): 76%
Market Perform (Hold): 23%
Underperform (Sell): 1%
Inv. Banking Relationships*
Outperform (Buy): 30%
Market Perform (Hold): 13%
Underperform (Sell): 0%
* Percentage of companies in each rating category that are investment banking clients, defined as companies for which William Blair has received compensation for investment banking services within the past 12 months.
The compensation of the research analyst is based on a variety of factors, including the quality and accuracy of research, client feedback, contributions to other firm departments, competitive factors, and firm profitability.
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