The shares of this large-cap AI stock engaged in the business of providing software engineering and strategy services, gained attention after JP Morgan’s positive outlook on the stock.
Price Action
With a market capitalization of Rs 82,361.27 crore, Persistent Systems Ltd fell up to 3.5 percent in Friday’s trading session to a low of Rs 5,274 per share compared to its previous closing price of Rs 5,467.10 per share. The stock retraced from its day’s low and was trading at Rs 5,284.65 which is 3 percent lower than the previous closing price.
What Happened
JP Morgan has given an “Outperform” rating on the stock with a target price of Rs 7,200 indicating an upside potential of nearly 38 percent compared to its previous closing price.
Analysts forecast 21 percent revenue and 29 percent earnings CAGR over FY25-27, reflecting the company’s robust earnings growth and expanding opportunities. JP Morgan has further added that Persistent Systems Ltd is the fastest growing company in their coverage and appreciated the management for navigating the tough macroeconomic environment very well. The brokerage also sees potential for margin expansion, driven by reduced reliance on subcontractors and improved operating leverage.
They have further added that the 13 percent drop in price over the last three weeks should be considered as a good opportunity to buy. JPMorgan views the stock as a strong long-term growth compounder with substantial upside potential.
Company Overview
Persistent Systems Limited is an India-based company offering software products and technology services. It operates in BFSI, healthcare and life sciences, and technology sectors. The services provided by the company include solutions like digital strategy, software engineering, cloud & infrastructure, automation, IT security, enterprise integration, and data analytics.
Its cloud offerings comprise hybrid & multi-cloud transformation, data center modernization, and IT operations. The company’s premier partners are Microsoft, Google Cloud, Amazon, IBM and Salesforce. As of Q3 FY25, Persistent Systems’ top 10 clients contribute to around 40 percent of their total revenue.
Written by Shwetha Sairam
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