From Globe & Mail this AM * BMO’s Deepak Kaushal cut his Converge Technology Solutions Corp. (
) target to $8 from $9 with an “outperform” rating, while Scotia’s Divya Goyal lowered her target to $10 from $11 with a “sector outperform” rating. The average is $9.21.
“We trimmed our forecasts and valuation multiple to reflect near-term conservatism with respect to the pace of acquisition integration and organic growth,” said Mr. Kaushal. “That said, we continue to believe the recent sell-off was an over reaction to a less relevant quarter, and continue to believe Converge can achieve its 2025 goal of $5-billion revenue and $500-million EBITDA. Furthermore, we continue to expect mix of higher margin services to increase, and ROIC to improve.”
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