CTG - Good profit growth despite increased provisioning - Earnings Flash
CTG just published its Q3 financial statement with decent profit growth and improvement in bad debt management, evidenced by lower NPLs and higher provisioning. 9M results reached 77% of our forecast and can surpass our forecast for 2016. However, its vague outlook on capital raising poses downside risk for the coming years. We reiterate a MARKETPERFORM rating for CTG and will update our target price in the coming report.