The Globe and Mail reports in its Thursday, April 30, edition that Canaccord Genuity analyst Aravinda Galappatthige has lowered his recommendation for NTG Clarity Networks to "speculative buy" from "buy." The Globe's Darcy Keith writes in the Eye On Equities column that Mr. Galappatthige slashed his share target by $1.20 to $2.70. Analysts on average target the shares at $2.44. Mr. Galappatthige issued his rating downgrade following fourth-quarter results that showed lower free cash flow and a $88-million backlog that reflected a slowdown in new contract signings. The analyst sees "upside prospects off the current price levels," but also "sustained risks" relating to the growth trajectory and free cash flow generation. Mr. Galappatthige says in a note: "Our target price revision is due to a reduction to the target multiple from 7.5 times to 4.5 times as we roll our valuation forward to 2027. This is intended to reflect a steep sell-off among IT services peers (comp group at 4.9 times 2027E), lower visibility into the growth trajectory owing to slower PO [Purchase Order] win rate, and regional tensions."