Bank of America Securities analyst Cassie Chan reiterated a Hold rating on TTEC Holdings (TTEC – Research Report) yesterday and set a price target of $9.00.
Cassie Chan’s rating is based on a nuanced evaluation of TTEC Holdings’ performance and market position as the company navigates a year of transition. The company’s first quarter results were respectable, with a slight revenue beat and margins and EPS in line with expectations. However, the firm’s stock price did not surge following these results, which reflects ongoing challenges such as implementation delays, especially in the public sector, and a broader difficult economic climate. TTEC Holdings has ceased providing quarterly guidance for 2024, which signals a cautious outlook and adds to the uncertainty surrounding its short-term financial outlook. Despite recognizing TTEC as a leader in the customer experience technology sector, Chan believes the current risks and rewards are balanced, leading to the Hold rating.
The 2024 fiscal outlook maintains revenue and margin guidance but lowers EPS projections, primarily due to an increased tax rate and interest expenses. The company’s revenue guidance remains unchanged, and there is an expectation for improvement in the second half of the year, particularly from healthcare and public sector verticals. However, the adjusted earnings outlook has been revised downwards, reflecting the pressures from increased tax and interest obligations. By updating the estimates and price objective post-Q1 results, Chan has reduced the price objective slightly, which aligns with the neutral perspective on the stock’s prospects. This cautious stance is further substantiated by the stock trading at approximately five times the projected 2025 earnings, suggesting that the current market price may adequately reflect the company’s value.
According to TipRanks, Chan is an analyst with an average return of -20.3% and a 7.69% success rate. Chan covers the Technology sector, focusing on stocks such as Marqeta, TTEC Holdings, and TaskUs.
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TTEC Holdings (TTEC) Company Description:
TTEC Holdings, Inc. is a digital global customer experience technology and services company focused on the design, implementation and delivery of transformative solutions for many of brands. The company operates through the following segments: TTEC Digital and TTEC Engage. TTEC Digital segment provides design, build and operate tech-enabled, insight-driven CX solutions. TTEC Engage segment provided digitally-enabled customer care, acquisition, and fraud prevention services. The company was founded by Kenneth D. Tuchman in 1982 and is headquartered in Englewood, CO.
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