Q: I cant believe this is at 3.84 after two green days and the quarterly report. It was at this price when it had 190 million more debt and 40 million more shares. What would be a theoretical price based off company metrics.
5i Research Answer:
EPS of 19c beat estimates of 12c; Revenue of $651M matched estimates. EBITDA of $45M was 2% better than expected. But CTS did cut its 2024 EBITDA forecast, from $185M+ to $176M+. Gross profit forecast was also lowered by a slim amount. Q2 revenue saw a small increase, but service revenue did decline 12%. But organic growth was 'double digits'. The balance sheet is much improved, and strong EPS growth is still expected next year. But in investors' eyes, a lowered forecast is a lowered forecast. It is 7X earnings. We think it could trade at 10x to 12X with some growth consistency, which would imply a price range $5.70 to above $6.