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CINT: Share Repurchases Will Support Returns Despite Moderating Profit Outlook

Cloud-Native And Digital Modernization Will Accelerate Enterprise AI Transformation

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CINT
AnalystConsensusTarget
Not Invested
Published 17 Feb 2025

Update shared on 05 Dec 2025

Fair value Decreased 9.64%
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AnalystConsensusTarget's Fair Value
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1Y
-24.8%
7D
3.5%

Analysts have lowered their price target on CI&T by approximately 10 percent to about $7.07, citing expectations for slower revenue growth, softer profit margins, and a reduced future P/E multiple. Together, these factors signal a more muted medium term earnings outlook.

What's in the News

  • Issued new earnings guidance for the fourth quarter of 2025, projecting reported revenue of USD 130.4 million to USD 132.6 million. This implies 12.5 percent year over year growth at constant currency and 16.8 percent growth in U.S. dollars at the midpoint compared to the fourth quarter of 2024 (company guidance).
  • Provided full year 2025 outlook calling for organic revenue growth at constant currency between 12.5 percent and 13.0 percent year over year, signaling expectations for a solid but not rapid expansion pace (company guidance).
  • Announced a share repurchase program authorizing the buyback of up to 5,000,000 Class A shares, with the program running through December 31, 2026 (company announcement).
  • The Board of Directors approved the new buyback plan on September 12, 2025, reinforcing management focus on capital returns alongside organic growth investments (company announcement).

Valuation Changes

  • The fair value estimate was reduced from approximately $7.83 to about $7.07, reflecting a moderate downward revision in intrinsic value.
  • The discount rate increased slightly from about 13.7 percent to roughly 14.1 percent, indicating a marginally higher required return and risk premium.
  • The revenue growth assumption was lowered from around 13.4 percent to about 10.8 percent, signaling expectations for slower top line expansion.
  • The net profit margin was trimmed from roughly 11.1 percent to about 9.1 percent, implying more conservative assumptions on future profitability.
  • The future P/E multiple was reduced from approximately 25.2x to about 21.4x, pointing to a more cautious view on the valuation investors may be willing to pay for earnings.

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Disclaimer

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