2024-02-22 19:52:15 ET
Summary
- Synchronoss is a provider of white-label cloud management software, mainly for telecommunication carriers.
- The company has been restructuring for years, and last year it achieved operational profitability. This year, it completed its divestment process.
- However, the equity is still at substantial wipe-out risk unless the company can return to profitability quickly.
- The author does not believe management will be able to grow its core segment fast enough, or do so with sufficient cost-effectiveness.
- The author believes the stock is overvalued both from an equity and from an EV perspective.
Synchronoss Technologies ( SNCR ) is a provider of white-label cloud managing platforms, mainly for telecommunication carriers.
Last year, I wrote about SNCR with a pretty critical view and a Hold rating. The reasons were lack of profitability, lack of cost control, excessive leverage, excessive management compensation, and an aggressive competitive landscape....
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Synchronoss Continues To Be Overvalued Even As A Pure-Play