With a pair of awards in hand, it is clear that Canada’s Converge Technology Solutions (Converge Technology Solutions Stock Quote, Chart, News, Analysts, Financials TSX:CTS) is a key partner to high-flying NVIDIA, says Eight Capital analyst Christian Sgro.
On March 19, CTS announced that it had been selected as a NVIDIA Partner Network (NPN) 2024 Americas award winner in the categories of Networking Partner of the Year and Canadian Partner of the Year.
“Converge is honored to have been recognized by Nvidia as both the Networking Partner of the Year and Canadian Partner of the Year at the 2024 NPN Americas Partner awards,” CEO Greg Berard said. “Artificial intelligence is a strategic area of business for Converge and our customers. We are excited to see our progress in the AI space recognized through these awards.”
The analyst says this is a clear positive.
“Converge won two of fourteen total awards as part of NVIDIA’s Partner Network 2024 Americas Awards, supporting all progress in the AI space,” he wrote. “We have seen NVIDIA climb in importance within Converge’s business, to a Top 5 vendor from the Top 20. With this afternoon’s announcement, it is clear that Converge is a key partner to NVIDIA, validating all of Converge’s recent commentary and signaling more collaboration to come.”
In a research update to clients March 19, Sgro maintained his “Buy” rating and price target of $9.00 on CTS.
“We have seen Converge outpace the market in hardware sales, attributable to high-performance clusters and AI workloads,” the analyst added. “We think this early lead in the infrastructure layer positions Converge well into follow-on conversations related to software, applications, and services. Converge currently trades at 6.4x 2025E EV/adj. EBITDA compared to IT solutions providers at 9.5x. Our target price is based on 9.5x.”
“Converge is an IT and cloud solutions provider. Converge provides advisory, implementation, and managed services expertise across all major IT vendors in the marketplace.”
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