Leandro Bastos, an analyst from Citi, has initiated a new Buy rating on CI&T (CINT).
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Leandro Bastos has given his Buy rating due to a combination of factors that highlight CI&T’s strong market position and growth potential. The company is well-positioned to capitalize on the ongoing trend of digital transformation and AI adoption across enterprises, which has been a significant driver of its impressive sales growth over the past two decades. CI&T’s robust profitability, with an EBITDA margin ranging from 19% to 25%, along with strong cash flow generation and high returns on invested capital, further reinforce its attractiveness as an investment.
Despite potential risks such as tariff tensions and recession fears, Bastos notes that recent surveys indicate a resilient outlook for IT budgets, which bodes well for CI&T’s future demand. The company’s competitive advantages, including its strong client engagement, skilled tech talent, and advanced AI capabilities, are expected to enhance its market position. Additionally, the current valuation of CI&T’s shares, trading at a discount compared to its peers, provides a margin of safety, making it an appealing investment opportunity.