Thryv Holdings (THRY) has just reshaped its pitch to investors with a new AI-native growth platform for local service businesses, paired with fresh partnerships alongside Ooma and Wix.com announced around its latest earnings release.

The new AI-native platform and partnerships have landed against a difficult backdrop for Thryv Holdings shareholders, with the stock down 56.88% on a year to date share price basis and the 1 year total shareholder return down 82.22%, a continuation of longer term total shareholder return declines over 3 and 5 years.

If you are comparing Thryv with other software names tied to the AI theme, it may help to widen the lens and look at 68 profitable AI stocks that aren't just burning cash.

After Thryv Holdings’ sharp share price slide and its reset around an AI-native platform, the question is simple. Does it make more sense to step in now, or to wait for a clearer entry based on the numbers?

Most Popular Narrative: 48% Undervalued

Thryv Holdings last closed at $2.45 while the most followed narrative places fair value closer to $4.67 per share, based on a 12.46% discount rate and detailed forecasts for revenue, earnings and margins.

The analysts have a consensus price target of $4.67 for Thryv Holdings based on their expectations of its future earnings growth, profit margins and other risk factors.

However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $6.0, and the most bearish reporting a price target of just $4.0.

Want to see what justifies a higher value for an unprofitable, shrinking revenue business like Thryv Holdings? The key ingredients are future earnings, margin shape and how rich a multiple this narrative is willing to put on those earnings. Curious which assumptions really move the fair value line.

Result: Fair Value of $4.67 (UNDERVALUED)

However, the Thryv Holdings story also carries clear risks, including ongoing subscriber contraction and the planned run off of high margin legacy marketing services by 2028.

Next Steps

With both risks and rewards in play for Thryv Holdings, do you want to rely on others or form your own judgment quickly based on the data in front of you? A useful place to start is by weighing the 2 key rewards and 2 important warning signs.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.