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CIBC Confirms Neutral Rating and Target of $5.00 on Computer Modelling After Q4 Results

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CIBC Capital Markets maintained its neutral rating and target price of $5.00 on the shares of Computer Modelling Group (CMG.TO) after the company reported its fiscal fourth-quarter financial results on Thursday.

The bank views the company's Q4 as a "constructive step forward". It noted recurring organic revenue returned to positive territory, supported by new software revenue following the transition of CMG's contract with Shell for CoFlow from a professional services-based development contract to a multi-year software licensing agreement.

"While Q4 performance was encouraging, execution is still key, and guidance for F2027 indicates CMG remains in a period of transition," said analyst Erin Kyle. "The current oil price environment looks increasingly constructive for CMG, and we expect the company could benefit over the medium-term as more countries look to increase oil production through new exploration or by revisiting older assets."

CIBC revised its fiscal 2027 estimates lower to reflect lower year-over-year Professional Services revenue and stable year-over-year organic recurring revenue compared to fiscal 2026, which it expects will be back half weighted. It has also rolled forward its estimates to fiscal 2028, and now expects revenue to decline by -0.1% in fiscal 2027, and grow by 3.7% in fiscal 2028.

(covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www..com/contact-us)

Price: $4.05, Change: $+0.11, Percent Change: +2.79%

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