Analyst Ruplu Bhattacharya of Bank of America Securities maintained a Hold rating on Concentrix (CNXC – Research Report), retaining the price target of $65.00.
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Ruplu Bhattacharya’s rating is based on a combination of factors including the limited impact of Generative AI on Concentrix’s revenue in the near term, as the technology is still in the early stages of deployment across the company’s client base. Despite the potential for strong second-quarter results, there is a headline risk associated with Generative AI that could affect the stock’s performance.
Additionally, while the end markets are performing as expected, with some sectors like travel and financial services showing growth, others such as technology and healthcare are facing challenges. The company’s valuation appears low, and although there is potential for a short squeeze due to increased short interest, the overall macroeconomic environment remains weak. These factors contribute to maintaining a Hold rating, as the risks and opportunities appear balanced at this time.
Bhattacharya covers the Technology sector, focusing on stocks such as Sanmina-Sci, Concentrix, and Arrow Electronics. According to TipRanks, Bhattacharya has an average return of 3.6% and a 54.70% success rate on recommended stocks.