CNXC - Concentrix: AI Doesn't Seem An Imminent Risk And Valuation Is Cheap
2024-03-19 11:38:12 ET
Summary
- Concentrix offers outsourcing services with a focus on customer experience.
- AI has raised doubts about whether it could replace the services of Concentrix, but I don't find evidence to think that this will be the case.
- In a scenario where AI doesn't have the negative impact that market expects, +20% annual returns with conservative assumptions could be obtained.
Investment Thesis
The emergence of generative AI has produced many winners in recent months, but there're always two sides to the story and companies like Concentrix (NASDAQ: CNXC) are an example of this, since market has been punishing them heavily in the last year because of the rise of AI....
Concentrix: AI Doesn't Seem An Imminent Risk And Valuation Is Cheap