- RBC Capital analyst Paul Treiber lowered the price target for Softchoice Corp (TSX:SFTC) (OTC:SFTFC) to C$23 from C$27 while maintaining the Sector Perform rating on the shares, given reduced peer valuations.
- The analyst states that Softchoice reported Q1 below consensus/RBC, as certain onetime headwinds weighed on profitability and growth.
- Positively, Software & Cloud revenue was in line with estimates, and Q1 billings were healthy (+11% Y/Y), which provides visibility to the achievability of FY22 guidance (>11.5% Y/Y), he added.
- Price Action: SFTC shares traded higher by 6.68% at C$19.65 on TSX on the last check Friday.
