Sharekhan has given Buy on the stock with a revised price target (PT) recommendation for Persistent Systems with a target price of Rs. ekhan is bullish on Persistent Systems has recommended buy on the stock with a revised price target (PT) of Rs. 4,730 in its research report issued on Oct 27, 2021
We believe Persistent Systems is wellpositioned to deliver another year of market-leading growth in FY2022, given its strong capabilities in the product engineering space, healthy relationships with large enterprises, strong execution and broad-based demand across its verticals. Further, the management expects demand to remain strong over next 2-3 years. At CMP, the stock trades at a valuation of 35x/29x its FY2023E/FY2024E earnings, justifying the strong revenue growth potential with improvement in margins, consistent in deal wins and improving return ratios. We expect USD revenue/earnings to clock a CAGR of 20%/26% over FY2022-FY2024E. Given superior revenue growth, strong balance sheet and M&A opportunities, we retain a Buy on the stock with a revised price target (PT) of Rs. 4,730.