Canaccord has initiated coverage on CI&T (CINT, Financial) with a Buy rating, although it has adjusted the price target to $8 from a previous $10. This revision comes as the company sees increased adoption of its FLOW platform, resulting in a commercial pipeline that has grown over 30% compared to the previous year. The analyst highlights improved visibility with top accounts and describes CI&T as a unique growth story that is gaining more attention from investors.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 9 analysts, the average target price for CI&T Inc (CINT, Financial) is $8.17 with a high estimate of $9.96 and a low estimate of $6.77. The average target implies an upside of 41.81% from the current price of $5.76. More detailed estimate data can be found on the CI&T Inc (CINT) Forecast page.
Based on the consensus recommendation from 10 brokerage firms, CI&T Inc's (CINT, Financial) average brokerage recommendation is currently 2.1, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for CI&T Inc (CINT, Financial) in one year is $6.92, suggesting a upside of 20.14% from the current price of $5.76. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the CI&T Inc (CINT) Summary page.
CINT Key Business Developments
Release Date: May 13, 2025
- Net Revenue: $110.9 million in Q1 2025, a 4.9% increase from $105.7 million in Q1 2024.
- Organic Net Revenue Growth at Constant Currency: 13.7% year over year.
- Adjusted EBITDA: $19.6 million, a 15.2% increase from $17 million in Q1 2024.
- Adjusted EBITDA Margin: 17.6% in Q1 2025, up from 16.1% in Q1 2024.
- Cash Generated from Operating Activities: $19.6 million, representing 100% cash conversion from adjusted EBITDA.
- Adjusted Net Profit: $9.6 million, a 14.2% increase from $8.4 million in Q1 2024.
- Adjusted Net Profit Margin: 8.7% in Q1 2025, up from 8% in Q1 2024.
- Adjusted Diluted Earnings Per Share: $0.07, a 16.6% increase from the previous year.
- Free Cash Flow to Adjusted Net Income Ratio: 151.6%.
- Employee Growth: 7,400 employees, a 21.6% increase compared to Q1 2024.
- Revenue by Geography: Latin America grew by 11%, North America by 12% year over year.
- Revenue by Industry Verticals: Financial services increased by 25%, retail and industrial goods by 32%.
- Top 10 Clients' Revenue Growth: 7.2% compared to Q1 2024.
- Clients Generating Over $10 Million in Revenue: 10 clients.
- Clients in the $5 Million to $10 Million Range: 13 clients.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- CI&T Inc (CINT, Financial) reported a net revenue of USD 110.9 million for Q1 2025, marking a 13.7% year-over-year growth at constant currency.
- The company's adjusted EBITDA increased by 15.2% to $19.6 million, with a margin of 17.6%, showcasing operational efficiency.
- CI&T Inc (CINT) has been awarded the digital agency of record for Volkswagen of America, highlighting its strong client relationships.
- The company is experiencing significant growth in key markets, with revenue from Latin America and North America increasing by 11% and 12%, respectively.
- CI&T Inc (CINT) is at the forefront of AI adoption, with over 85% of employees utilizing the AI-powered CI&T Flow platform daily.
Negative Points
- The company faces macroeconomic uncertainties, which could impact client IT investment decisions in the US and Brazil.
- Despite growth, CI&T Inc (CINT) acknowledges ongoing macro volatility, which may affect future revenue projections.
- The company is cautious about M&A opportunities due to the high bar set by AI disruption, limiting potential acquisitions.
- CI&T Inc (CINT) is investing heavily in R&D and AI transformation, which could strain resources if not managed effectively.
- The company has a high dependency on its top clients, with 10 clients generating over $10 million in revenue, posing a risk if any major client relationship changes.
