TSX:CVO - Post Discussion
Post by
retiredcf on Feb 06, 2024 9:37am
And Stifel
Other changes include: Stifel’s Suthan Sukumar to $15 from $14 with a “buy” rating.
“CVO delivered a beat-and-raise print for FQ3,” said Mr. Sukumar. “Revenues were modestly ahead and reflected early-signs of a broader demand recovery amidst a still challenging macro backdrop, while a stronger outperformance in operating losses underscores improving operating leverage with the company reaffirming positive cash-flows next year (while break-even year-to-date). Importantly, CVO’s new GenAI offering (launched in mid-Dec) accounted for 20 per cent of total bookings with an acceleration in signings. Notably, this momentum to-date remains driven by existing customers, but with adoption now increasingly across all solutions areas – i.e. service, workplace, websites, and commerce, vs. CVO’s initial focus on service – we believe this bodes well for net-new customer traction with potential for larger-scale deals as CVO executes on their go-to-market plan. We raise our target price to $15/share given strong execution with growing proof points on the GenAI scale opportunity, which continues to suggest upside to current Street expectations, in our view.”
Be the first to comment on this post