CI&T initiated with a Buy at Citi

Citi analyst Leandro Bastos initiated coverage of CI&T with a Buy rating and $7 price target The firm sees the company as a “compelling topline story”, offering investors a vehicle to play the secular prospects of enterprise-wide digital transformation/ and artificial intelligence adoption. CI&T provides a combination of “sound” profitability, “strong” cash flow generation, “superior” returns, and “skin-in-the-game” from founders, the analyst tells investors in a research note. Citi says that while CI&T faces risks from tariffs tensions and recession fears, its checks suggest a “resilient outlook” for IT budgets.