$15 price target initiated by Raymond JamesComputer Modelling Group Initiated at Outperform, $15 Price Target at Raymond James 08:13 AM EDT, 06/17/2024 (MT Newswires) -- Raymond James initiated coverage of Computer Modelling Group Ltd. (CMG.TO) with an Outperform rating and $15 price target.
Analyst Steven Li said the Calgary-based software company, which provides software for the oil and gas industry, has seen its valuation rise recently as the stock gained rapidly.
"We still see a rare combination of solid double-digit organic growth (10%+) with a very strong margin profile (high-30s margin)," Li said in a note to clients. "As a result, we believe CMG deserves to trade at a premium against some of its peers."
"Given the potential for organic growth to be augmented by M&A (a new element to the CMG model, not factored in), potential for further margin expansion and Rule of 40 status, we believe CMG deserves to trade at least in-line with some other high organic growers in our coverage," the analyst said.