Converge Technology Solutions(CTS:TSX) Analysts maintain ratings after Earnings

STA Research
by: STA Research

Echelon Wealth Partners maintained  Converge Technology Solutions Corp with a Buy rating, and a $14.50 target on the company.

CIBC Capital Markets maintained the Neutral rating and $11 target on the stock.

Scotiabank Capital also maintained the Outperform rating, with a $14 12 month target forecast on the equity.

Based on the Converge Technology Solutions Corp stock forecasts from 8 analysts, the average analyst target price for Converge Technology Solutions Corp is CAD 13.06 over the next 12 months. Converge Technology Solutions Corp’s average analyst rating is . Stock Target Advisor’s own stock analysis of Converge Technology Solutions Corp is Slightly Bullish , which is based on 6 positive signals and 4 negative signals. At the last closing, Converge Technology Solutions Corp’s stock price was CAD 10.66. Converge Technology Solutions Corp’s stock price has changed by +1.54% over the past week, +0.73% over the past month and +93.82% over the last year.

What we like:

Superior risk adjusted returns

This stock has performed well, on a risk adjusted basis, compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile.

Superior capital utilization

The company management has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

Low debt

The company is less leveraged than its peers ,, and is among the top quartile, which makes it more flexible. However, do check the news and look at its sector. Sometimes this is low because the company is not growing and has no growth potential.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

Superior Earnings Growth

This stock has shown top quartile earnings growth in the previous 5 years compared to its sector.

What we don’t like:

High volatility

The total returns for this company are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Overpriced compared to earnings

The stock is trading high compared to its peers on a price to earning basis and is above the sector median.

Overpriced on cashflow basis

The stock is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Overpriced on free cash flow basis

The stock is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

 

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