Canaccord starts ‘scale player’ Concentrix with a Buy

Canaccord analyst Joseph Vafi initiated coverage of Concentrix with a Buy rating and $150 price target. In the large and increasingly strategic markets for advanced customer care and customer experience, or CX, solutions, "scale not only matters, it is increasingly becoming key to sustainable market share gains and competing successfully," contends the firm, which adds that Concentrix is "well on its way to becoming literally the top CX player globally" via a strategy of organic growth and M&A. As "the scale player in the space," the firm believes that the competitive moat for Concentrix "only continues to expand across several key growth vectors," adding that it views the stock as "underfollowed" despite the company’s "juggernaut size."