In a report released today, Vincent Colicchio from Barrington maintained a Hold rating on Convergys Corp (NYSE: CVG). The company’s shares opened today at $25.15.
Colicchio commented:
“We believe the timing of the sale is poor given the meaningful weakness in the company’s communications vertical, especially with its largest client, over the past few years. Since the deal’s announcement, the shares of both SNX and CVG have traded lower, which we believe reflects investor concerns over the high risk associated with predicting Convergys’ future revenue streams. Further, we believe the price action may reflect a lack of confidence in the expected cost synergies of $150 million as the benefits of scale tend to be relatively limited in the contact center business. We would prefer that management diversified its vertical exposure through acquisitions and better organic execution before considering a sale.”
According to TipRanks.com, Colicchio is a 3-star analyst with an average return of 4.7% and a 51.1% success rate. Colicchio covers the Technology sector, focusing on stocks such as Sykes Enterprises Inc, Exlservice Holdings, and Computer Task.
The word on The Street in general, suggests a Hold analyst consensus rating for Convergys Corp with a $22 average price target.
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Based on Convergys Corp’s latest earnings release for the quarter ending March 31, the company reported a quarterly net profit of $29.8 million. In comparison, last year the company had a net profit of $39.8 million.
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Convergys Corp. engages in the provision of integrated agent, analytics and technology solutions. It offers sales, customer care, customer retention, technical support, collections, analytics, and omnichannel technology. The company was founded in 1998 and is headquartered in Cincinnati, OH.
