CLSA has raised its target price for Persistent Systems to ₹8,462, maintaining an ‘Outperform’ rating. The brokerage highlights Persistent’s unique capabilities, which position it for robust growth, with a projected 21% U.S. dollar revenue CAGR over FY25-27. CLSA also increased EBIT margin estimates for FY27 to 16.2%, up from 15.5%, citing stronger-than-expected operational leverage and margin expansion opportunities.
Persistent is well-poised to benefit from rising demand for IT services, particularly in cloud computing and artificial intelligence. Its strategy of combining organic growth with M&A activity has further strengthened its market position.
Recent Developments: Persistent recently announced key client wins in the BFSI and healthcare sectors, aligning with its long-term strategy to expand into high-growth verticals. The company also reported double-digit revenue growth in Q2 FY25, reflecting sustained demand across geographies.
