CI&T, the Technology sector company, was revisited by a Wall Street analyst yesterday. Analyst Luke Morison from Canaccord Genuity maintained a Buy rating on the stock and has a $8.00 price target.
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Luke Morison has given his Buy rating due to a combination of factors that highlight CI&T’s strong performance and growth potential. The company reported a solid quarter with a consistent revenue growth of approximately 12% in constant currency terms, alongside impressive adjusted EBITDA margins of around 18%. This indicates a healthy balance between growth and profitability. Additionally, CI&T’s cash conversion rate exceeded 100%, showcasing its efficient financial management.
Moreover, the company has shown confidence in its future prospects by raising its revenue growth guidance and maintaining a robust commercial pipeline, which increased by 25% year-over-year. Despite a significant portion of growth being driven by its largest customer, a Brazilian financial services firm, CI&T’s top-10 client revenue also saw a notable increase. The firm’s proprietary AI-driven platform, FLOW, has been a key driver of productivity and is now integrated into most client engagements. These factors, combined with potential market share gains and the ongoing adoption of GenAI technologies, support the Buy rating as CI&T is positioned as a promising growth story with structural advantages in the AI space.
In another report released yesterday, TD Cowen also reiterated a Buy rating on the stock with a $9.00 price target.
CINT’s price has also changed moderately for the past six months – from $7.320 to $4.860, which is a -33.61% drop .