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Investor Insights

This summary was created by AI, based on 18 opinions in the last 12 months.

Converge Technology Solutions (CTS-T) has faced challenges such as missed quarters, failed attempts to sell the company, and a shift from acquisitions to focusing on operations. However, it has shown positive momentum in terms of revenue growth, free cash flow, and a healthy balance sheet. There is some uncertainty regarding its profitability and future prospects, but it is trading at a relatively cheap valuation and is seen as a potential takeover target. Overall, the stock has faced setbacks but also has potential for growth and recovery.

Consensus
Mixed
Valuation
Undervalued
HOLD

Great rebound this year. Acquisition spree, overpaid, grandiose ambitions. New CFO has transformed operations. Outlook very solid. Very strong shape financially. Buying back shares, initiated dividend. Cheap at 8-9x earnings. More upside.

Technology
PARTIAL BUY

It missed a couple of quarters and has undergone a strategic review but has not been sold. It has stopped doing acquisitions and is focusing on operations. It has a new CFO who has a good reputation. It looks cheap, is executing, and is a potential takeover. He is looking at an $8 target.

Technology
DON'T BUY

Way better tech investments to make. Tried to sell company, didn't go anywhere, stock collapsed. Low-margin business.

Technology
COMMENT

Recent breakout good for momentum investors. Not at all time highs yes. Watching closely. Fairly stable up trend. Now a good time to buy. 

Technology
BUY ON WEAKNESS

Had a big move technically. Be careful, as it looks as though it's going for a head and shoulder pattern. Under 8x 2024 numbers, growing 19%. TSX is brightening, as long as the economy stays like this. Good one to buy.

Technology
TOP PICK

Unlike Nvidia, CTS trades at 5.5x PE. Has a lot of upside where profits are growing faster than revenues.

(Analysts’ price target is $6.66)
Technology
HOLD
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

CTS had a good update, but we would like to see the final year profit numbers and would also like to see more quarters to ensure a positive trend has been established. We are comfortable with it as a HOLD but less so as an ADD. On the TFSA question there is no answer that suits everyone. We would suggest 8 to 12. 
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Technology
DON'T BUY

Doesn't follow it closely. Gross margins are 15% max. They were growing by acquisition until higher interest rates paused that. Organic growth is around 5% at best. It doesn't deserve a high valuation. They didn't attract a high enough offer to be bought out.

Technology
PAST TOP PICK
(A Top Pick Feb 03/23, Down 33%)

In 2020/21 it was growing rapidly but has pulled back from its high of $12. There were some missteps and it missed a couple of quarters. However in the past 6 to 12 months it has started focusing on integrating the companies they bought and not buying new ones. It is also focusing on cost control and cross selling. It is doing the right things now but it will take some time to expand their margins.

Technology
BUY

A pandemic darling, but their valuation became extreme and they had trouble managing their profitability. As they remained profitable, it couldn't keep up with the street's rising expectations, and so it sold off hard. It bottomed last fall. He bought it as it started to rebound, hoping for rising profitability.

Technology
COMMENT

Technology in Canada has been number 1 over the last month and number 2 over the last week. Converge hasn't participated in the long term tech trend. It has had a decent bounce recently but he is not sure if its downward trend is over. He doesn't know its fundamentals but feels there are better places to be in tech.

Technology
DON'T BUY

He follows it. Very much a reseller of MSFT software. Extremely competitive industry, and these guys are only regional. Very good customer service. Not profitable, and that's the problem.

(Analysts’ price target is $4.95)
Technology
DON'T BUY

Canadian tech company that provides cyber security etc.
Expanded massively through M&A the past 5 years.
Low margin business.
Share price not performing the past 1-2 years.
Needs to demonstrate profitability.
Not buying at this time. 

Technology
HOLD
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

The stock's momentum has certainly been negative, however, it pays a yield of 1.2%, has shown good revenue growth, and generates free cash flow. It has a healthy balance sheet, but its profit margins are thin. Valuation is quite cheap, with a forward sales multiple of 0.3X, a forward P/E of 7.1X, and a price to book of 1.1X. It expects small revenue growth over the next few years, a slight decline in earnings this year with strong growth thereafter. We typically do not like buying on negative momentum and would prefer to see the stock find its footing, but we would be comfortable with holding here, and for an investor with a long timeframe and has a high risk tolerance, we would be OK with adding here in the event that it rebounds from these levels
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Technology
PAST TOP PICK
(A Top Pick Jul 11/22, Down 40%)

Everything that could go wrong with this went wrong. A company was interested in buying them, but didn't, and CTS missed a couple of quarters. Then, it was removed from the TSX. Now we're at maximum pessimism and the company is not doing any buying. Margins should rise. It will take time to recover, but he would buy at current levels.

Technology
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Converge Technology Solutions(CTS-T) Rating

Ranking : 4 out of 5

Bullish - Buy Signals / Votes : 6

Neutral - Hold Signals / Votes : 4

Bearish - Sell Signals / Votes : 4

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. 6 analysts recommended to BUY the stock. 4 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 2024-05-17, Converge Technology Solutions (CTS-T) stock closed at a price of $5.25.