Enghouse Systems Ltd T.ENGH

Enghouse as potential takeover target

[Dogsbreakfast4U]

10:42 AM EDT, 06/14/2022 (MT Newswires) -- Publicly-traded technology companies are more attractive takeover candidates due to the market pullback, CIBC Capital Markets said on Tuesday.

Analyst Stephanie Price said Q4 Inc. (QFOR.TO), Magnet Forensics Inc. (MAGT.TO), Enghouse Systems Ltd. (ENGH.TO) and Open Text Corp. (OTEX.TO) are among the potential takeover targets.

"We believe that recent market weakness has made publicly traded technology companies more attractive as acquisition targets," Price said in a note to clients.

"The valuation re-rate in the technology sector has been swift and far reaching," the analyst said. "At these levels, our software names are already pricing in higher interest rates and a recession."

"If we are heading into a recessionary environment, we would focus on stocks with high recurring revenue and strong enterprise exposure. "

[willyk3]

Have to agree but of the four ENGH stands out as the cheapest for me, Deservedly so?  Mag is a bit of a special case tho . But didnt I hear the same takeover talk when ENGH was twice this price?

[Dogsbreakfast4U]

What we were hearing when the stock was twice as high was that they were considering a sell. https://www.bnnbloomberg.ca/enghouse-systems-exploring-options-including-sale-1.1685573 Either way I think the company is not going to be in its current structure a year from now. Just my opinion of course.