JP Morgan has maintained its Overweight rating on Persistent Systems, citing the company’s high-quality growth trajectory and strong deal pipeline. The brokerage sees 30% potential upside, driven by robust earnings growth, operational efficiencies, and a clear long-term revenue target.
JP Morgan forecasts 21% revenue CAGR and 29% PAT CAGR over FY25-27, reflecting the company’s expanding business opportunities. The firm expects high-teens revenue growth in FY26, supported by record-high deal activity. Additionally, Persistent Systems has introduced a $5 billion revenue target by FY31, which implies a 26% CAGR over FY27-31.
The brokerage also highlights margin expansion potential, attributing it to subcontractor reduction and improved operating leverage. At the last traded price of ₹5,540, JP Morgan believes the stock remains a long-term growth compounder with significant upside potential.
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