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CTS: Buybacks And Margins Will Shape A Steady 2025 Outlook

Share Repurchases And New Technologies Will Support Measured Outlook Ahead

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CTS
AnalystConsensusTarget
Not Invested
Published 24 Sep 2024

Update shared on 11 Dec 2025

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AnalystConsensusTarget's Fair Value
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1Y
-21.2%
7D
0.02%

Analysts have modestly raised their price target on CTS, nudging it up by approximately 1 dollar per share, as they continue to see steady revenue growth, resilient profit margins, and a slightly higher justified earnings multiple supporting the company’s long term valuation.

What's in the News

  • The Board of Directors authorized a new share buyback plan, signaling continued confidence in the company’s capital returns policy (company announcement).
  • CTS launched a $100 million share repurchase program with no expiration date, providing added flexibility to deploy excess cash over time (company announcement).
  • Management highlighted a strong balance sheet with $110 million in cash versus $91 million in long term debt, supporting both strategic acquisitions and shareholder returns (earnings commentary).
  • The company reported repurchasing approximately 1.75 million shares, or 5.82 percent of shares outstanding, for $78.82 million under the existing buyback program (company filing).
  • CTS narrowed its 2025 sales guidance to a range of $535 million to $545 million, indicating expectations for steady top line performance (corporate guidance).

Valuation Changes

  • Fair Value Estimate is unchanged at approximately 47 dollars per share, indicating no material shift in intrinsic value assessment.
  • The Discount Rate has risen slightly from about 8.64 percent to roughly 8.67 percent, modestly increasing the required return on equity.
  • Revenue Growth is effectively unchanged at around 4.63 percent, reflecting a stable outlook for top line expansion.
  • Net Profit Margin is effectively unchanged at about 13.51 percent, supporting a consistent earnings power profile.
  • Future P/E has risen slightly from roughly 19.05 times to about 19.06 times, implying a marginally higher valuation multiple on forward earnings.

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Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.