Converge Technology Solutions keeps “Buy” rating at Eight Capital

Following a meeting with the company, Eight Capital analyst Christian Sgro remains bullish on Converge Technology Solutions (Converge Technology Solutions Stock Quote, Chart, New, Analysts, Financials TSX:CTS)

The company recently hosted its annual “Coffee and Converge” meeting, which the analyst said highlighted the its solutions in areas such as AI and cybersecurity.

The analyst said the company is building AI solutions to address evolving market dynamics.

“Management was upbeat about greenfield opportunities; today, most mid-market organizations need help establishing primary data pipes, cleaning and tagging data, among other areas,” he said. “Independent of size or industry, organizations that do not have statistical models or strong engineering cultures are not as well prepared for rapid AI change. The prepared companies have seen storage costs become inexpensive and analytical tools are now sophisticated enough to keep up, but clients need guidance to optimize practices. As an example, most clients of learning models have been bimodal, using both open- and closed-sourced LLMs, navigating the costs and walled-garden approach of popular models.”

And the analyst noted that the company cybersecurity ambitions are broad.

“Management was upbeat about greenfield opportunities; today, most mid-market organizations need help establishing primary data pipes, cleaning and tagging data, among other areas,” Sgro said. Independent of size or industry, organizations that do not have statistical models or strong engineering cultures are not as well prepared for rapid AI change. The prepared companies have seen storage costs become inexpensive and analytical tools are now sophisticated enough to keep up, but clients need guidance to optimize practices. As an example, most clients of learning models have been bimodal, using both open- and closed-sourced LLMs, navigating the costs and walled-garden approach of popular models.”

In a research update to clients September 14, Sgro maintained his “Buy” rating and one-year price target of $7.00 on CTS.