Desjardins Downgrades Alithya Group (TSE:ALYA) to Hold

Key Points

• Desjardins downgraded Alithya Group from “buy” to “hold” and cut its price target from C$1.55 to C$1.15, implying about 8.5% upside from the reported C$1.06 share price.
• Analyst sentiment has weakened, with several firms lowering ratings or price targets; MarketBeat reports a consensus “hold” rating and a consensus target of C$1.80.
• Alithya reported quarterly revenue of C$105.05 million and EPS of C$0.04, but continues to show a negative net margin of 8.12% and negative return on equity of 24.36%.

Alithya Group (TSE:ALYA - Get Free Report) was downgraded by investment analysts at Desjardins from a "buy" rating to a "hold" rating in a research note issued to investors on Friday,BayStreet.CA reports. They currently have a C$1.15 price objective on the stock, down from their previous price objective of C$1.55. Desjardins' price objective suggests a potential upside of 8.49% from the company's current price.

Several other analysts also recently issued reports on the company. Ventum cut their price objective on Alithya Group to C$2.00 and set a "buy" rating on the stock in a report on Monday, June 15th. Barrington Research lowered shares of Alithya Group from an "outperform" rating to a "market perform" rating in a report on Friday. ATB Cormark Capital Markets lowered shares of Alithya Group from an "outperform" rating to a "sector perform" rating and decreased their price objective for the stock from C$1.60 to C$1.35 in a research note on Friday. Finally, Scotiabank downgraded shares of Alithya Group from a "sector outperform" rating to a "sector perform" rating and cut their target price for the company from C$2.00 to C$1.50 in a research note on Friday, April 24th. Two research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company's stock. According to MarketBeat, the company presently has a consensus rating of "Hold" and a consensus price target of C$1.80.

Alithya Group Price Performance

TSE:ALYA traded down C$0.04 during trading hours on Friday, reaching C$1.06. 20,288 shares of the company's stock were exchanged, compared to its average volume of 59,354. The company has a quick ratio of 1.32, a current ratio of 1.25 and a debt-to-equity ratio of 88.81. The company has a market capitalization of C$102.57 million, a P/E ratio of -2.65, a price-to-earnings-growth ratio of 2.38 and a beta of -0.71. Alithya Group has a 12 month low of C$0.94 and a 12 month high of C$2.20. The business's 50-day simple moving average is C$1.06 and its two-hundred day simple moving average is C$1.29.

Alithya Group (TSE:ALYA - Get Free Report) last announced its quarterly earnings data on Thursday, August 13th. The company reported C$0.04 EPS for the quarter. The company had revenue of C$105.05 million during the quarter. Alithya Group had a negative return on equity of 24.36% and a negative net margin of 8.12%. Sell-side analysts expect that Alithya Group will post 0.0400733 EPS for the current fiscal year.

Alithya Group Company Profile

Alithya Group Inc is a leader in Strategy and digital transformation, with professionals in Canada, the us, and Europe. Its integrated offering is laid out as follows: Strategy, custom solutions, Microsoft solutions, and Oracle solutions. Clients entrust the company with their strategic projects across Banking, Investment and Insurance, Energy, Manufacturing, Retail and Distribution, Telecommunications, Transportation, Professional Services, Healthcare, and Government sectors. Geographically, it derives a majority of revenue from Canada.

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