Eight Capital Eight Capital’s Christian Sgro to $7 from $9 with a “buy” rating.
“Converge reported Q1/23 results ahead of estimates; however, strength was overshadowed by an uncertain demand environment and the sudden conclusion of its ongoing strategic review,” he said. “The company’s value proposition is centered on its holistic and differentiated offering to the mid-market. Management was positive about the resilience of this cohort as compared to the enterprise market where the demand environment seems less certain. We believe Converge’s valuation can potentially re-rate higher with execution on top-line growth expectations alongside steady margin expansion.”