Looks like the stock has had a nice run back up to 3.60 from 2.90, is it possible that 3.00 is now established as the bottom?
Anything you found interesting from the results or conf. call that would have the markets push the stock back up from 2.90?
Is it still considered cheap based on 3Q results and 4Q/full year guidance?
Can you please provide adjusted rating upgrades/downgrades by analysts after 3Q results?
Thanks!
Average target is now $5.04. Post-earnings, Scotiabank lowered its rating from $5 to $4. At less than 9X earnings it certainly can still be called cheap. Q3 results showed EPS of 12c, beating estimates of 9.5c. Revenue of $630.7M slightly missed estimates of $639.7M. EBITDA missed estimates by 14%. Guidance was mostly inline with estimates. Q3 sales fell 8.9% and we certainly would prefer to see this trend reverse. The CC did not add a whole lot. The CEO/Board transition is ahead of plan. CTS continues to return capital to shareholders (buybacks and dividends). CTS is not seeing attractive acquisitions and prefers to buyback its stock over making a mis-priced deal. With rising cash flow conversion the balance sheet is in much better shape, with net debt less than six months of cash flow now. This 'should' help the valuation multiple over time.