{"id":320250,"date":"2023-01-05T11:32:07","date_gmt":"2023-01-05T03:32:07","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=320250"},"modified":"2023-01-06T23:43:11","modified_gmt":"2023-01-06T15:43:11","slug":"stock-in-focus-cnvrg-5-jan-2023-by-ap-securities","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-cnvrg-5-jan-2023-by-ap-securities\/","title":{"rendered":"Stock in Focus: Converge ICT (CNVRG) – 5 Jan 2023 by AP Securities"},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>CNVRG<\/td><\/tr>
Company Name<\/strong><\/td>Converge ICT Solutions Inc.<\/td><\/tr>
Broker<\/strong><\/td>AP Securities<\/td><\/tr>
Opinion Issued on<\/strong><\/td>5 Jan 2023<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 35.00<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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We currently have a Target Price of P35.00 per share on CNVRG<\/strong>, our preferred pick in the telco sector.<\/p>\n\n\n\n

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Analysis and Opinion<\/h2>\n\n\n\n

According to news reports, Converge ICT Solutions, Inc. has secured regulatory approval to provide international connectivity services in Singapore as the listed fiber internet service provider moves to expand its international wholesale business.<\/p>\n\n\n\n

A subsidiary of CNVRG, Converge SG, has been granted with a facilities-based operations license. This allows Converge SG to start deploying telecom infrastructure and provide connectivity services and fiber optic cable capacity to wholesale and enterprise customers in SG. <\/p>\n\n\n\n

We note that while national broadband plans and significant fiber network connectivity in SG has long been executed, the growing capacity requirement, particularly for redundancy, of the country\u2019s industries makes Converge SG venture viable. <\/p>\n\n\n\n

It\u2019s worth noting that SG is the rising tech hub in the region \u2014 according to an article from Techinasia, 80 of the world\u2019s top 100 tech companies have a presence in the ASEAN country. Furthermore, we see this benefitting CNVRG operations in PH as well. Considering the company\u2019s growing international network capacity, specifically with Bifrost and Hainan Hongkong cable system expected to be operational next year, this presence in SG could allow CNVRG to bring in more international enterprise clients to PH which should support our data center narrative for the fiber company as well. <\/p>\n\n\n\n

It is quite crucial for CNVRG to increase the contribution of its enterprise segment now that the residential segment is experiencing some slowdown in terms of growth. Therefore, this venture into SG, the contract with Starlink, as well as the upcoming participation in PH national broadband program, should offset much of the projected slower growth in its resi subscribers in the longer run.<\/p>\n\n\n\n

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Check how many brokers recommend this stock<\/h2>\n\n\n\n
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All Stock Rankings<\/a><\/blockquote>