New York, NY, March 12th, 2024
Below are some of the most topical Software & Services Stocks on the BWI Shareholder Confidence Index based on our daily chats with global investors. If you would like more detailed shareholder conviction intelligence on Global Software & Services companies, please contact Youssef Ahmed.
OpenText Corp.: OpenText has been a topical name this quarter with investors in the BWI Panel. The Micro Focus deal expands the business into the cyber security space, however, it does have strong competition which may limit their ability to be competitive according to investors. It is described as a show me story in 2024, dependent whether if OpenText can execute on their strategy. As of March 11th, 2024, investors continue to rate their confidence in OpenText’s Strategy, Transparency, Balance Sheet, Senior Management and Short Term Growth potential below the peer group and sector average. Investor ratings of the CEO dropped to the sector average, although some investors are believers in the Strategy and CEO, Mark Barrenechea.
Telus International: Will AI help Telus International or hurt the business? Investors are mixed. Investors are of the view that the content moderation segment of the business could either be disrupted by AI, or Telus International can be at the forefront of this transition implementing AI solutions. The standout Investment Quality metrics for Telus International, as of March 11th, 2024, as per investors, is the Price Appreciation, and Long Term Growth Potential, which scores above the peer group and sector average. Investor rate CEO, Jeff Pruitt, in line with the sector average, and the Momentum in Investor Confidence for the coming year drops below the sector and peer group average. Telus International is also highly reliant on a few clients which represents added risk according to investors.
CrowdStrike: The cyber security sector continues to attract investor interest and CrowdStrike is a benefactor. According to investors CrowdStrike has strong fundamentals and growth prospects, the thesis for growth is continued consolidation and acquisitions of vendors. Investor’s rate CrowdStrike highly across BWI’s Investment Quality metrics. The strategy is well understood, and investor confidence in Short-Term Growth Potential ranks 1st. So far in 1Q, investors rate the CEO, George Kutz, Senior Management Team and Longer Term Growth potential very competitively as well and above their peer group average. However, confidence in the Balance Sheet ranks lower than their peer group average as investors expect the company to get active on the deal front.
The Trade Desk: Investors rate The Trade Desk as one of the top names on BWI’s Software & Services Investment Quality Index. As an advertising focused business, the platform at Trade Desk is highly utilized, but a volatile share price keeps investors cautious from an ownership perspective. Confidence in the Corporate Strategy, Short-Term Growth, Transparency, CEO, Senior Management and Long-Term Growth all rank very highly according to investors, but ownership conviction in the Trade Desk is only average thus far in 1Q, 2024.
Largest Shareholder Confidence Short-term Growth Score Changes (YE 1Q2024 at March 11th vs. YE 4Q2023):
Software & Services
Guidewire Software Inc. 23%
DXC Technology Company. +17%
Constellation Software Inc. +10%
Twilio Inc. +8%
Cap Gemini SA. +7%
Altus Group. -18%
Dassault Systemes SA. -7%
Synopsys Inc -7%
Gen Digital Inc. -7%
Intuit Inc. -6%
Brendan Wood International (BWI) serves a dual clientele of world leading investors and their corporate investment targets as well as broker dealers who provide research, sales and trading services to the investment community. Big cap companies looking for comprehensive investor confidence data on their organizations are likely to discover that Brendan Wood partners consult with their investors non stop year round. Investors depend on BWI to quantify the demand side of the investment industry across 1400 names worldwide, including the name by name research sales and trading professionals who influence investor demand.
About Brendan Wood International:
Brendan Wood International (BWI), formed in 1970, is a private advisory group which originates performance investigation programs in the capital markets. Brendan Wood Partners debrief large institutional investors worldwide on a daily basis. There are 2000+ live consultations with professionals overseeing +/- $55 trillion invested in the +/- 1400 big cap companies on the BWI Index. Relying on its real time performance intelligence, BWI advises public companies, institutional and activist investors, investment banks and broker dealers on strategy, performance and recruitment of TopGun talent. The firm’s partners have formally presented at 1000+ C level strategy meetings and corporate off-sites in fifty cities. Brendan Wood founded the exclusive TopGun Club, a performance based institution.
Disclaimer:
We wish to emphasize that all reports, evaluations and assessments contained herein, represent Brendan Wood International’s subjective judgment and opinions, based on our years of experience and on information obtained by us in the course of our research. Much of the factual information contained in the reports has been obtained by us from third parties on whose responses we have relied in good faith, independent verification by Brendan Wood International being, under the circumstances, impossible. While we believe that you will find our reports to be an invaluable tool in formulating your own strategies and judgments, the foregoing should be borne in mind. This report is not meant as investment advice and should not be interpreted as advising on the value of a company’s securities, the advisability of investing in, purchasing or selling any company’s securities or any other conclusion relating to investment/divestiture of a company’s securities. Finally, this report is not intended as an offer or solicitation for the purchase or sale of any company’s securities.
Contacts:
Gordon Peck
Managing Director
Brendan Wood International
+1 416 924 8110
gpeck@brendanwood.com
Youssef Ahmed
Field Director
Brendan Wood International
+1 416 924 8110
yahmed@brendanwood.com
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