The Impact of Amdocs Limited's Bearish Thesis on Its Investment Prospects
Amdocs Limited (NASDAQ:DOX) shares have been trading at $87.00, with a closing price of $87.74 on Feb 27. Analysts have relied on FCF guidance for measuring the performance of DOX and recent results have been disappointing, with the company missing its 2024 FCF guidance despite a reduced target. The sustainability of its cash flow from its regular business is also questionable given the over-reliance on balance sheet management to generate cash flows.
- The bearish thesis highlights the risks associated with Amdocs Limited's reliance on balance sheet management, which could lead to a decrease in cash flow and negatively impact its investment prospects.
- What are the potential strategies that investors could consider to mitigate these risks and achieve better returns from their investments in Amdocs Limited?