Computer Modelling Group (CMG:CA)
Computer Modelling Group had its coverage resumed by National Bank of Canada, with a Sector Perform rating and a 12 month target price of $6.00, reflecting a balanced view of the company’s near- to medium-term growth prospects. The analyst highlighted CMG’s strategy to further monetize its long-standing and deeply embedded customer base as a key lever that could support an acceleration in revenue growth over time, particularly as energy producers continue to prioritize efficiency, reservoir optimization, and capital discipline.
National Bank also pointed to CMG’s strong recurring revenue profile, high-margin software model, and solid balance sheet as important defensive characteristics. However, the Sector Perform rating suggests that while the strategic direction is constructive, upside may be more incremental in the near term, with valuation already reflecting much of the anticipated improvement. Execution on pricing, product upgrades, and cross-selling opportunities will be critical for CMG to materially outperform peers, especially in a commodity-driven environment where customer spending remains selective.
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