PERSISTENT

Emkay and Nomura have lowered their target price of Persistent Systems, citing rich valuations, while Motilal Oswal has reiterated its Buy, citing growth visibility for the company, following the March quarter earnings, with the shares higher by 2 percent on April 25 in a weak market. In its note, Emkay increased its FY26-27e EPS for Persistent Systems by approximately 1-3%, but maintained a ‘Reduce’ rating and target price of Rs 5,000 due to high valuations, reflecting a downside of 3%. Nomura too has lowered target price to Rs 5,000 at 36x FY27e EPS as opposed to Rs 5,600 earlier, accounting for the rising macro risks. A Neutral rating has been retained given the stock’s rich valuation, and the brokerage prefers Coforge in the mid-cap India IT services space. Motilal Oswal, however, remains optimistic on Persistent Systems and has reiterated its ‘buy’ amid a ‘steadfast quarter’, citing good growth visibility ahead. They expect Persistent Systems’ revenue/EBIT/PAT to grow by 23.4%/41.3%/9.4% YoY in 1QFY26. The Brokerage values Persistent Systems at 45x FY27E EPS. Motilal Oswal reiterated its ‘Buy’ with a target price of Rs 6,450.