YB new stock purchases (Tue, Jan 28)

Thryv Holdings (THRY) is a SaaS company masked by a declining Yellow Pages segment, with software now representing over 50% of revenue. CEO Joe Walsh, who previously led Cambium Learning to a 13.5x return, is implementing a similar strategy at THRY. The SaaS segment is growing at 29% and hitting the rule of 40, while the YP decline is strategically engineered to accelerate the SaaS transition. The recent Keap acquisition adds capabilities and accelerates growth. THRY trades at a 50% discount to peers, with a $54 price target (226% upside) at 3x NTM revenue. The company benefits from tailwinds such as boomer retirement and SMB digitalization. Risks include SMB dependence, debt perception, and an SEC probe into non-GAAP reporting. Management guides for 18-20% SaaS growth in 2025, with potential for 5-10x upside longer-term.

Read the full article here. Read time: 9 min

ClearPoint Neuro (CLPT) is the only company offering an iMRI neuro navigation platform for a $12B+ total addressable market, with 50+ biopharma partners researching over 35 neurological disorders. The company's expansion into operating rooms through SmartFrame OR and Prism technology is expected to accelerate adoption and drive 5% upside to consensus FY25 and FY26 topline estimates. High-margin disposables (70-75% gross margin) are projected to drive a 500+ bps gross margin expansion, while partner progression could further boost EBIT. CLPT aims for 35% EBITDA margins at scale and is on track to achieve cash flow breakeven by Q4'25. The company's platform is critical for delivering neuro gene and cell therapies, with each partner representing an $8-10M revenue opportunity pre-commercialization. Key risks include biotech funding slowdowns and potential dilution. With a price target of $33.6, CLPT offers 83% upside potential.

Read the full article here. Read time: 4 min

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DCC plc, a buy and build specialist trading at 9x EV/EBIT versus a historical average of 14x, offers a potential 250% return over five years (29% CAGR) based on a valuation rerating, 9% organic growth, and 4% acquisition growth. The company's new strategy targets doubling profits by 2030, focusing on energy solutions and mobility. DCC plans to sell its Healthcare and Technology units, using proceeds for share buybacks. A conservative case still offers a 22% CAGR. The company has a strong track record, delivering a 6,500% return in its first 25 years as a listed entity. Despite recent challenges, including slower acquisition growth and COVID-19 impacts, DCC's management has consistently beaten conservative projections. The investment thesis relies on a return to historical valuation levels, continued organic and acquisition-driven growth, and the successful execution of its energy-focused strategy.

Read the full article here. Read time: 12 min