TLDR:
- Scotiabank raised Converge Technology stock target to C$8 from C$7.
- The price target adjustment comes after the company reported strong Q4/23 results and discussed strategic priorities for fiscal year 2024.
Scotiabank has increased its price target for Converge Technology Solutions Corp. (CTS) from C$7.00 to C$8.00, maintaining a Sector Outperform rating for the company’s stock. This adjustment follows the company’s strong fourth-quarter results for fiscal year 2023, which surpassed expectations. The company’s strategic priorities for fiscal year 2024, including a new organic growth strategy, were discussed during a fireside chat at Scotiabank’s Annual TMT Conference. The revised price target reflects an analysis of the company’s recent financial achievements and updated earnings projections, highlighting a focus on organic growth. Converge Technology’s success is attributed to factors such as increased client engagement, demand for digital transformation solutions, and operational discipline. The company aims to achieve profitability goals through measures like maintaining adjusted EBITDA-to-CFO conversion targets. Scotiabank’s updated price target suggests a projected one-year rate of return of around 37% for Converge Technology’s stock.
