Converge Technology Solutions Price Target Increased

Converge Technology Solutions (TSE:CTS) has recently seen a notable increase in its price target set by Scotiabank, who raised their previous target from C$4.00 to C$5.50 in a research report released on Friday. This updated price target suggests an expected upside of approximately 1.48% from the company's current market price, reflecting a positive outlook in the stock's future performance.

The stock has undergone various analyses and recommendations from different equity research firms. For instance, TD Securities reduced their price forecast for Converge Technology Solutions from C$5.00 to C$4.50, as reported on November 13th. In another instance, on October 25th, National Bankshares adjusted their rating from "outperform" to "sector perform," lowering their target from C$6.00 to C$4.50. Furthermore, Stifel Nicolaus established a target of C$4.00 while assigning a "hold" rating on January 16th, and on January 15th, Stifel Canada upgraded the shares to a "strong-buy" classification. The National Bank Financial also changed their stance by moving from a "strong-buy" rating to a "hold" rating on October 24th.

Overall, Converge Technology Solutions has received a blend of ratings, with six research analysts recommending a hold, five endorsing a buy, and two issuing a strong buy rating. According to data compiled by MarketBeat, the consensus among analysts stands at a "Moderate Buy" with an average price target of C$5.56.

Stock Performance Overview

On the latest trading day, the stock experienced a significant uptick of 53.5%, closing at C$5.42. Trading volume reached 10,725,993 shares, a considerable rise compared to the average of 783,749 shares. Over the past year, Converge Technology Solutions saw a low of C$2.90 and a high of C$6.06. The fifty-day simple moving average is C$3.44 while the two-hundred-day average sits at C$3.86. The company has a market capitalization of C$1.06 billion and shows a debt-to-equity ratio of 99.08, with a quick ratio of 0.68 and a current ratio of 1.00.

Recently, Converge Technology Solutions reported its quarterly earnings, announcing C$0.12 earnings per share, which exceeded the consensus estimate of C$0.08 by C$0.04. However, the company reported a negative return on equity of 33.46% and a negative net margin of 6.10%. Comparatively, the company earned C$0.10 per share during the same quarter in the previous year. Analysts predict that Converge Technology Solutions will generate approximately 0.688 earnings per share in the current fiscal year.

Company Background

Converge Technology Solutions Corp is a Canadian firm focused on building a network of regionally targeted Hybrid IT infrastructure providers. These providers offer various solutions and services in the United States. Their offerings include multi-cloud solutions, blockchain technology, resilience services, and managed services to tackle the business and IT challenges faced by both public and private sector organizations.

Converge, Technology, Stock