CI&T price target lowered to $8 from $10 at Canaccord Genuity

Investing.com - Canaccord Genuity lowered its price target on CI&T Inc. (NYSE:CINT) stock to $8.00 from $10.00 on Thursday, while maintaining a Buy rating on the digital solutions provider.

The new price target implies an approximately 11x forward EV/EBITDA multiple for the company, which specializes in digital transformation services for global enterprises. The company’s current EV/EBITDA stands at 12.3x, with a healthy financial profile reflected in its GOOD overall health score on InvestingPro.

Canaccord Genuity cited deepening adoption of CI&T’s FLOW methodology and a commercial pipeline that has increased over 30% year over year as positive factors supporting its continued Buy rating.

The research firm also noted improving visibility across CI&T’s top accounts, despite the reduced price target.

Canaccord characterized CI&T as a "differentiated, underfollowed growth story with expanding investor relevance" in its analysis published Thursday.

In other recent news, CI&T Inc has filed its annual report for the fiscal year ending December 31, 2024, with the U.S. Securities and Exchange Commission. This document provides a detailed view of the company’s financial performance, including audited financial statements and management’s discussion of the year’s results. Additionally, CI&T Inc held its Annual General Meeting, where shareholders approved the financial statements and auditor’s report, indicating confidence in the company’s financial practices. JPMorgan recently upgraded CI&T’s stock rating from Neutral to Overweight, citing the company’s enhanced growth prospects due to increased client spending on artificial intelligence. The firm set a price target of $7.00, highlighting CI&T’s strategic investments in AI tools and its shift to reporting financial results in U.S. dollars. Similarly, Citi initiated coverage on CI&T with a Buy rating and the same price target, emphasizing the company’s consistent sales growth and sound financial health. Citi noted CI&T’s strong profitability and cash flow generation, alongside its competitive advantages in client engagement and advanced AI capabilities. These developments underscore CI&T’s promising outlook and financial stability in the technology sector.

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