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Concentrix ‘compressed’ multiple not due to fundamentals, says Canaccord

Canaccord analyst Luke Morison reiterates a Buy rating on Concentrix (CNXC) with an $80 price target following a transfer of coverage. The stock’s multiple is “compressed” due to investor uncertainty about the impact of artificial intelligence on labor-levered models and secular headwinds, rather than any fundamental deterioration at Concentrix, the analyst tells investors in a research note. The firm believes the company’s growth can reaccelerate as the secular headwinds normalize and its AI monetization ramps.

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