Echelon- cantechletter.com Three top tech picks for Q1 2023
Echelon Capital Markets analyst Rob Goff is sticking with his guns on a trio of tech stock picks for the year ahead. Goff delivered reports on Tuesday on Converge Technology Solutions (Converge Technology Solutions Stock Quote, Charts, News, Analysts, Financials TSX:CTS), Playmaker Capital (Playmaker Capital Stock Quote, Charts, News, Analysts, Financials TSXV:PMKR) and Quisitive Technology Solutions (Quisitive Technology Solutions Stock Quote, Charts, News, Analysts, Financials TSXV:QUIS), all of which are returning as Top Picks for Goff for the first quarter of the new year.
Goff said he was disappointed to see the share price drop by 30 per cent for Converge, an IT solutions provider, over the Q4 2022 despite the company’s announcement that it was undergoing a strategic review following expressed third-party interest and also coming during a period where Converge’s US and European peers were up 11.3 per cent and flat at 0.9 per cent, respectively.
Goff thinks the market is overlooking the strength of Converge’s growing scale and expertise in high-growth verticals and he remains optimistic that strong demand and a backlog drawdown will support double-digit organic growth going forward.
“While near-term performance will shift with updates and speculation around the strategic review, we view CTS as an attractive stock with building fundamental momentum together with an impeccable performance track record against its copy/paste/accrete/repeat formula,” Goff wrote.