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Investor Insights

This summary was created by AI, based on 21 opinions in the last 12 months.

Converge Technology Solutions (CTS-T) has been experiencing mixed reviews from experts. Some experts believe that the stock is undervalued, has potential for growth and is a good long-term investment, while others are not as optimistic due to recent disappointing performance, high debt to equity ratio, and lack of profitability. The stock has shown fluctuating momentum, with a focus on improving operations and returning capital to shareholders. The recent rebound and focus on integrating acquired companies and cost control have garnered some positive attention. Overall, the stock's trajectory remains uncertain, with varying opinions on its future prospects.

Consensus
Mixed
Valuation
Undervalued
WATCH
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

Average target is now $5.04. Post-earnings, Scotiabank lowered its rating from $5 to $4. At less than 9X earnings it certainly can still be called cheap. Q3 results showed EPS of 12c, beating estimates of 9.5c. Revenue of $630.7M slightly missed estimates of $639.7M. EBITDA missed estimates by 14%. Guidance was mostly inline with estimates. Q3 sales fell 8.9% and we certainly would prefer to see this trend reverse. The CC did not add a whole lot. The CEO/Board transition is ahead of plan. CTS continues to return capital to shareholders (buybacks and dividends). CTS is not seeing attractive acquisitions and prefers to buyback its stock over making a mis-priced deal. With rising cash flow conversion the balance sheet is in much better shape, with net debt less than six months of cash flow now. This 'should' help the valuation multiple over time. 
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Technology
SELL

Company has been disappointing lately. 2020 was a good year, but since then growth has slowed. Earnings not matching expectations. Share price is cheap, but better options out there for investors. Has sold shares. Management team not meeting with investors enough. 

Technology
DON'T BUY

Very high debt to equity of around 99%. ROE is -33%. Financial metrics tell him to stand aside.

(Analysts’ price target is $6.25)
Technology
SELL

They don't make a lot of profit. Cut it and move on. Take a tax loss.

Technology
WAIT

Owns small amount of shares. M&A has paused lately. Strategic review didn't go well. Time will tell whether business will continue to perform. Wait and see type of stock.  

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

We continue to like CTS, and although its recent momentum has not been favourable, we believe its long-term value is still in play. It pays a small yield of 1.4%, analysts expect decent forward sales and earnings growth, albeit slightly lumpy, but its valuation reflects this, at 7X forward earnings.  Its valuation is cheap, its debt levels are fine, and its free cash flow is impressive. While recent momentum has not been great, we continue to believe its valuation will re-rate as its fundamentals continue to improve. 
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Technology
PARTIAL BUY

Will see strength in the tech sector going forward. Would recommend buying if the chart begins to turn. Seeing upside in the stock. 

Technology
BUY ON WEAKNESS

It's done OK, but not as great as the big names. 12-month target is $6.55. Pretty widely held. Removed from the TSX Composite, so that dragged it out of some portfolios. Buy in thirds here at $4.70, $4.50, and $4.25.

Technology
PAST TOP PICK
(A Top Pick Mar 12/24, Down 15%)*Note the short timeframe.

Fundamentally, the story hasn't changed. Market's gone through a correction. Very inexpensive. Good play on AI, as purchases in that area are made through a company like this. Be patient. Low valuation, raised dividend, buying back stock, you'll be fine.

Technology
WATCH

Hired some new expertise. 12-month price target around $6.25. If it breaks through that, there's nothing between $6.75 and $10. He's watching carefully.

Technology
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
Showing 1 to 15 of 73 entries

Converge Technology Solutions(CTS-T) Rating

Ranking : 5 out of 5

Bullish - Buy Signals / Votes : 8

Neutral - Hold Signals / Votes : 2

Bearish - Sell Signals / Votes : 5

Total Signals / Votes : 15

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, 15 stock analysts published opinions about CTS-T. 8 analysts recommended to BUY the stock. 5 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?

15 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 2024-12-04, Converge Technology Solutions (CTS-T) stock closed at a price of $3.35.