Emkay Global Financial has given Buy recommendation for Persistent Systems with a target price of Rs. 4600 in its research report issued on Mar 15, 2022
Emkay Global Financial’s report on Persistent Systems
PSYS has entered into an agreement to acquire a 100% stake in MediaAgility Inc and its subsidiaries in Mexico, UK, Singapore and India. The total purchase consideration is USD71.71mn (~2.8x EV/S on TTM Dec’21 sales), payable in cash. Deal rationale: Through this acquisition, PSYS will enhance its partnership with Google, and the deal will be the foundation for a dedicated Google business unit. It will enable PSYS to offer verticalized solutions around the Google cloud ecosystem, in line with its strategy to add relevant skills across key hyperscaler partners. The acquisition will also strengthen the talent base of PSYS with 220+ Google Cloud certified architects and cloud engineers in US, Mexico, UK and India.
We have yet not factored in the transaction in our estimates, pending its closure. We have a Buy rating on PSYS with a TP of Rs4,600 at 35x Mar’24E EPS.
At 13:40 hrs Persistent Systems was quoting at Rs 4,432.40, up Rs 111.35, or 2.58 percent.
It has touched an intraday high of Rs 4,461.00 and an intraday low of Rs 4,402.30.
It was trading with volumes of 3,034 shares, compared to its thirty day average of 14,385 shares, a decrease of -78.91 percent.
In the previous trading session, the share closed down 3.40 percent or Rs 152.25 at Rs 4,321.05.
The share touched its 52-week high Rs 4,986.85 and 52-week low Rs 1,735.40 on 03 January, 2022 and 15 March, 2021, respectively.
Currently, it is trading 11.12 percent below its 52-week high and 155.41 percent above its 52-week low.
Market capitalisation stands at Rs 33,874.62 crore.