JPMorgan has reiterated its Overweight rating on Cyient’s share price, setting a target price of ₹1,750 per share, implying a 19% upside from the current market price (CMP) of ₹1,474.25.
The brokerage sees the appointment of a new external CEO as a positive development, highlighting his strong sales experience, which could help drive business growth. JPMorgan expects the new leadership to transition the company from project-based deals to long-term annuity contracts, improving revenue visibility and stability.
Additionally, Cyient is advised to rework its guidance process to avoid missing projections, suggesting that the company should refrain from providing guidance until the new CEO gains confidence in business operations.
A major missing piece in Cyient’s portfolio is Automotive Engineering R&D (ER&D), an area that could witness significant growth in the medium to long term. JPMorgan suggests strategic acquisitions to scale up its presence in this space, reinforcing its growth trajectory.
With these structural improvements and leadership transition, the brokerage expects Cyient’s financial performance and stock valuation to strengthen over time.
Disclaimer
This article is for informational purposes only and does not constitute financial advice. Investors should conduct their own research or consult a professional advisor before making investment decisions.
