The Globe and Mail reports in its Tuesday, Dec. 14, edition that CIBC World Market analyst Stephanie Price commenced coverage on Converge Technology Solutions with a "neutral" recommendation and a $12.50 share target. The Globe's David Leeder writes that analysts on average target the shares at $13.78.
Ms. Price says in a note: "We hold a positive long-term view on Converge's strategy of rolling up the IT Service Provider (ITSP) market, which we expect to lead to significant cost synergies. Converge has a sticky, mid-market customer base that has access to limited internal IT talent. We see upside from recurring managed services as this client base transitions to the cloud. ... We watch for synergies from record M&A spending in 2021 and Converge's ability to navigate hardware-related supply chain disruptions. We are factoring in $300-million in M&A spending in 2022 and foresee upside to $20 per share if Converge can execute on additional acquisitions."
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