Analyst Bryan Bergin of TD Cowen maintained a Hold rating on TTEC Holdings (TTEC – Research Report), with a price target of $18.00.
Bryan Bergin’s Hold rating on TTEC Holdings is largely attributed to the company’s significant reduction in its projected fourth quarter revenue, accompanied by a 30% decrease in adjusted EBITDA. This, along with the increasingly stringent spending behavior and the need for further cost optimization to balance supply and demand, have had a negative impact on sentiment. The lack of visibility into the company’s future performance up until 2024, despite its discounted valuation, also contributes to the Hold rating.
Bergin’s rating further stems from TTEC’s recent third quarter results, which although were in line with guidelines and slightly above consensus, revealed a reduced outlook for the fourth quarter. This was largely due to macroeconomic pressure on spending behavior and the resulting muted seasonal benefit. Additionally, lower volumes in Engage and extended decision-making cycles in Digital led to a significant reduction in revenue guidance. Despite a previously conservative stance, the updated guidance indicates poor visibility from market headwinds that are likely to impact fundamentals into 2024. The analyst also noted that TTEC is grappling with demand headwinds that are negatively impacting margins and leading to unutilized costs.
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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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