Bernstein has retained its outperform rating on Persistent Systems, setting a target price of ₹6,300 per share following the company’s latest quarterly results. Persistent reported revenue growth of 3.3% quarter-on-quarter in constant currency terms and 18.8% year-on-year, broadly in line with market expectations. The growth momentum was particularly strong in the banking, financial services and insurance (BFSI) vertical, which expanded by 9%, and the hi-tech segment, which grew by 4%.
However, growth in the healthcare segment disappointed, contracting 2%, which management attributed to sector-specific headwinds. Persistent’s leadership acknowledged ongoing macroeconomic uncertainties that have resulted in some delays in client ramp-ups and project kick-offs. Despite these near-term challenges, management reiterated its medium-term revenue target of $2 billion by fiscal year 2027, underlining confidence in the company’s strategic direction and pipeline.
Given Persistent’s premium valuation levels relative to industry peers, Bernstein cautioned that the stock might face some near-term correction as the market digests these results and macro risks.
