DON'T BUY
It is a growth by acquisition story but these are low margin companies that they are trying to consolidate. It is hard to see where the value added play is.
Technology

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TOP PICK

IT services that integrates small and medium sized business. Growing aggressively through acquisition and organic opportunities. Expanding geographically and vertically within industry. Trading at 7.5x next times EBITA. Expecting further stock growth.

Technology
COMMENT
Lots of players in the space. A sizeable company. New solutions on blockchain. Interesting company. (Analysts’ price target is $9.45)
Technology
TOP PICK
They move small/mid-sized businesses into the cloud. Since 2017, they've been growing organically and by 30 acquisitions. They cross-sell and increase the customer base. They are expanding into Europe, most recently buying a company in the UK. Compounded EBITDA growth is 70% and revenue growth is around 50% compounded over the last 3 years. It trades at only 5.5x 2023's EBITDA vs. peers of 8.5-10.5x. He recently re-entered the stock. (Analysts’ price target is $10.31)
Technology
BUY
Likes it. Regionally focused. Well run. Very good at what they do. Proven themselves. From here, almost a double to the price target. (Analysts’ price target is $9.50)
Technology
TOP PICK
It is in the IT services industry focused on mid market customers in North America and Europe. It is growing very quickly so he is puzzled why the stock is so low. It has delivered on its acquisition plans and has provided solid organic growth. We should see more acquisitions and an increase in credit facilities and maybe even a dividend or buyback of shares with its free cash flow. It is growing 2 times as fast as its peers but trading at half the valuation. Buy 10, Hold 2, Sell 0 (Analysts’ price target is $11.73)
Technology
PAST TOP PICK
(A Top Pick Jul 12/21, Down 36%) They do IT outsourcing for small/medium business. CTS buys new companies and increase cross-selling by introducing new services, especially high-margin managed services rather than selling hardware. EBITDA margins should increase from 5% to 10% in the next few years. Still early days in its strategy.
Technology
BUY

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Quarter was good. Revenue grew 77%, beat estimates by 10% and EPS more than doubled to 8 cents, beating estimates by 25%. The company made five acquisitions year to date and organic growth was decent at 7%. Cash flow conversion was strong at 82%. Backlog looked healthy and showed good growth. Gross margins came down slightly, but management expects them to rise in the next quarter due to more software sales expected. Management also noted improvements on the supply chain side with regards to hardware deliverables from 4-6 months to 2-3 months (normally 4-6 weeks). Overall, CTS is well-positioned. No major concerns about the quarter. Negative momentum on the stock is more market-related than company-specific. Unlock Premium - Try 5i Free

Technology
PAST TOP PICK

(A Top Pick May 11/21, Up 27%) Management team executing very well. Expecting the company to grow organically and through M&A. Once interest rates & market volatility reduces, expecting stock price to rise.

Technology
BUY on WEAKNESS

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Continues to view the name positively.The weakness is probably from the bad market for tech and growth than with the company itself. Benefits from many tailwinds such as organisations transforming their data processes. Acquisition strategy is very disciplined. Unlock Premium - Try 5i Free

Technology
PARTIAL BUY
Not in his fund, but in separately managed accounts. Regionally focused, end-to-end IT service provider. An acquirer. Horizontal offerings, whereas CSU is more vertical. Buy in thirds here around $9.30, 8.75, and 8.25. Put a stop around $8. (Analysts’ price target is $12.32)
Technology
PAST TOP PICK
(A Top Pick Aug 16/21, Down 10%) A fast-growing IT services company, founded in 2017 and now generates $2 billion in revenues. Early Q4 results were better than expected. It's growing quickly and he expects more growth in North America and Europe. Management guides $5 billion annually in revenues by 2025 with $500 million of EBITDA. If so, the stock will hit $25.
Technology
HOLD
Believes company has long runway of acquisition opportunities. Organic revenue growth continues to increase. Recent tech selloff not affecting business. Increased cash flow will present more opportunities to grow for company. Will continue to hold.
Technology
BUY
Great Canadian story. Build up a portfolio of IT service providers, allowing them to offer multi-vendor tech solutions. 2.2B company. 20% from here, average analyst price target of $12.32.
Technology
BUY

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Continues to like this company. Remains a profitable tech consulting company with strong growth. Cash position is strong and valuation is cheap. Management is disciplined and their acquisition strategy is clear. Good upside is expected over the next few years. Could see multiple expansion. Unlock Premium - Try 5i Free

Technology
Showing 1 to 15 of 35 entries

Converge Technology Solutions(CTS-T) Rating

Ranking : 4 out of 5

Bullish - Buy Signals / Votes : 11

Neutral - Hold Signals / Votes : 1

Bearish - Sell Signals / Votes : 2

Total Signals / Votes : 14

Stockchase rating for Converge Technology Solutions is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Converge Technology Solutions(CTS-T) Frequently Asked Questions

What is Converge Technology Solutions stock symbol?

Converge Technology Solutions is a Canadian stock, trading under the symbol CTS-T on the Toronto Stock Exchange (CTS-CT). It is usually referred to as TSX:CTS or CTS-T

Is Converge Technology Solutions a buy or a sell?

In the last year, 14 stock analysts published opinions about CTS-T. 11 analysts recommended to BUY the stock. 2 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Converge Technology Solutions.

Is Converge Technology Solutions a good investment or a top pick?

Converge Technology Solutions was recommended as a Top Pick by on . Read the latest stock experts ratings for Converge Technology Solutions.

Why is Converge Technology Solutions stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is Converge Technology Solutions worth watching?

14 stock analysts on Stockchase covered Converge Technology Solutions In the last year. It is a trending stock that is worth watching.

What is Converge Technology Solutions stock price?

On 2022-12-07, Converge Technology Solutions (CTS-T) stock closed at a price of $4.715.