CLSA has reiterated its high-conviction outperform rating on Persistent Systems, while raising its target price to ₹8,865 per share, following another strong quarterly performance marked by broad-based growth and profitability improvement.
The brokerage said Persistent continued to meet or exceed expectations, delivering all-round revenue growth, strong order booking momentum and a sharp improvement in margins. Adjusted EBIT for Q3FY26 came in 9% above CLSA’s estimates, underscoring execution strength.
CLSA reiterated confidence in the company’s long-term revenue ambitions of US$2 billion by FY27 and US$5 billion by FY31, which it believes remain firmly on track given the current deal pipeline and client expansion trends. Reflecting improved earnings visibility, CLSA has raised its FY27 and FY28 EPS estimates by 3% and 2%, respectively.
The brokerage continues to forecast a FY25–27 revenue, EBIT and EPS CAGR of 22%, 30% and 31%, respectively, driven by digital transformation demand, platform-led offerings and sustained operating leverage.
CLSA believes Persistent remains well positioned within the mid-cap IT space, with superior growth visibility and margin trajectory compared with peers.
Disclaimer: The views and recommendations above are those of CLSA. Business Upturn does not endorse them. Please consult a financial advisor before making investment decisions.
