CNDT - Conduent: Still Maintaining The Long Thesis Although Some Concerns Over Renewal Momentum
- All of CNDT’s segments are currently witnessing sequential improvement, and in Q2 there are multiple tailwinds supporting revenue expansion.
- There has been a drastic slowdown in the pace of renewal contracts which could either be due to pricing factors or service quality.
- CNDT's CFO transition has been managed well and the company is looking to bolster its sales leadership to promote its under-tapped offerings in the commercial health segment.
- Consensus has upgraded their EBITDA estimates and we’ve seen an expansion in the forward EV/EBITDA multiple, but a higher net debt and a higher weighted average share count has brought down the target price.
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Conduent: Still Maintaining The Long Thesis, Although Some Concerns Over Renewal Momentum