Here are Ate’s and Roni’s comments regarding the profit warning.
We are lowering QPR’s target price to EUR 0.45 (previously EUR 0.55) and the recommendation to Sell (previously Reduce). QPR issued a profit warning on Tuesday, through which the company lowered its guidance for the current year’s SaaS revenue due to the termination of two customer contracts. The news is a clear disappointment, as the company’s investment story relies heavily on accelerating SaaS growth. Although the company reiterated its guidance regarding improving EBITDA, the profit warning confirms our previous concerns about sluggish new sales, slow customer decision-making, and also QPR’s ability to compete while being squeezed by large players. In relation to the weak growth outlook, we believe the stock’s valuation (2026e-2027e EV/S 1.6x-1.8x) is elevated and there are few catalysts for upside.