Concentrix Corp. (CNXC) PT Lowered to $47 at BofA Securities

BofA Securities analyst Ruplu Bhattacharya lowered the price target on Concentrix Corp. (NASDAQ: CNXC) to $47.00 (from $54.00) while maintaining a Neutral rating.

The analyst comments "CNXC reported better-than-expected F4Q revs of $2.55bn (+3.1% y/y in CC) above the high-end of guidance. CNXC exited F25 with approx. $60mn in ARR from its iX Suite AI platform on spending of about $50mn. We expect mgmt. to maintain a similar level of spending in F26. OM continues to be pressured as CNXC works through overcapacity issues (we expect mgmt. to work with customers whose volumes are not normalizing to either rationalize the capacity or seek some compensation for maintaining the capacity). CNXC took a $1.52bn non-cash goodwill impairment charge in F4Q which reflects the trading range of the stock during the quarter. Weak macro and headline risk from potential Gen AI impact remain, while the introduction of CNXC’s Gen AI based tools, and the low valuation multiple help offset some of the concerns, and we reit Neutral rating."

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