Q: Not that CLS has dropped so much, so quickly, do you think it's worth picking up right now? That is to say, or the fundamentals strong enough to start picking this up now, or is it likely to drop even further? As it seems to be connected to the EA industry, at a proceed to bubble, how do you foresee the next 3 to 5 years for this company?
5i Research Answer:
CLS is now trading at 10.8x Forward P/E. CLS has dropped quickly along with other AI-related names. Fundamentally, CLS’s prospects remain highly attractive, the company is expected to achieve double-digit organic growth over the next few years given the tailwinds from AI. We think the recent decline is an overreaction to the macro environment, and the recent downturn may offer an attractive opportunity to add to the position here. We would be comfortable adding to CLS at the current price.