In a report released today, David Larsen from BTIG maintained a Buy rating on Consensus Cloud Solutions (CCSI – Research Report), with a price target of $37.00.
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David Larsen has given his Buy rating due to a combination of factors that highlight the positive trajectory of Consensus Cloud Solutions. The company reported a solid start to the year with corporate revenue growth accelerating by 5.6% year-over-year, marking the highest growth rate in two years. This growth is attributed to new account wins, strong revenue retention, and an increase in paid customer additions. Additionally, the company’s adjusted EBITDA exceeded expectations, demonstrating robust earnings power.
Another factor contributing to the Buy rating is the strategic transition of SoHo accounts to Corporate, which is expected to stabilize in the coming years. The company’s efforts to pay down debt and improve its balance sheet are also noteworthy. Furthermore, the valuation of CCSI appears attractive, trading at a reasonable multiple of its projected 2026 EBITDA. These elements, combined with the potential for further investments and growth in the corporate segment, underpin Larsen’s positive outlook on the stock.