Comments
Shares of Persistent Systems fell on weak Q4 IP revenue forecast. The stock tanked as much as 9.9 per cent to Rs 706.25, its lowest since February 2.
The software services provider has forecast Q4 IP revenues will fall about $8 million sequentially. Decline in IP revenues will impact revenue and EBIDTA margin in Q4, the company had said in a filing to exchanges on Tuesday.
This is a quarter-specific phenomena and things should normalise in FY19, says Credit Suisse.
The company continues to expect healthy revenue growth over FY18-20, helped by digital, services business recovery and IoT, it adds. The brokerage has maintained “outperform” rating, and has set a target price of Rs 960.
“While there is seasonality in Q4, the extent of decline is a negative surprise (relative to brokerage’s expectations) and appears to be lower than the company’s expectations,’’ says Morgan Stanley. It has maintained “overweight” rating, and has fixed a target price of Rs 1,025.
25 of the 33 analysts covering the stock have a “buy” or higher rating, 2 have “hold” while 6 rate it at “sell” or lower; their median target price is Rs 857.50, according to Thomson Reuters data.
More than 315,000 shares traded, 1.6 times their 30-day moving average. Up to Tuesday’s close, stock had risen 31.6 per cent in 12 months.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.