Computer Modelling Group Ltd. (CMG:CA)
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Ventum Financial has cut its 12 month target forecast for Computer Modelling Group Ltd. to C$9 from C$14, after the company reported softer-than-expected fourth-quarter earnings. Both revenue and EBITDA missed analyst expectations, which raised concerns about the near-term growth trajectory and client spending trends in the energy sector.
This downgrade reflects a more cautious view on the company’s ability to maintain previous growth assumptions, especially amid macro uncertainty and reduced software renewal momentum from global energy producers.
Consensus Analyst Forecast
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Average 12-month Price Target (7 Analysts): C$11.08
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Average Analyst Rating: Buy
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Current Price (Last Close): C$6.99
Despite the downgrade from Ventum, the broader analyst community remains bullish, with most maintaining “Buy” ratings. The wide gap between the current stock price and the average target implies substantial upside potential—but only if execution and fundamentals improve.
Recent Stock Performance
Time Period Price Change
1 Week -15.99%
1 Month -12.52%
1 Year -43.67%
The stock has been under considerable selling pressure recently, with a steep year-over-year decline. The 15.99% drop in just the past week likely reflects market disappointment with Q4 results and a repricing of growth expectations.
Outlook
Computer Modelling Group Ltd. is currently facing a challenging outlook following a weak Q4. Ventum’s sharp target cut underscores the risk that CMG may not deliver near-term growth in line with past performance.
Analysts remain for the long-term constructive, and technical models still view the stock favorably based on its strong fundamentals. The current market price represents a substantial discount to consensus, potentially offering value if the company stabilizes its earnings trajectory.
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