Motilal Oswal Financial Services (MOSL) has reiterated its “Buy” recommendation for Persistent Systems, with a target price of Rs 6,300 per share. The brokerage firm’s analysis highlights Persistent’s growth targets and strategies amid current market conditions.
Key points from MOSL’s report:
- Revenue Target: Persistent aims to achieve $2 billion in revenue by FY27, with management expressing optimism about meeting this goal.
- Business Environment: The company acknowledges a challenging business environment.
- Cost Management: Persistent is implementing strict cost management strategies to navigate current market conditions.
- Focus Areas: The company is concentrating on high-demand sectors including data, cloud, and digital engineering.
- Geographic Diversification: Persistent plans to increase its revenue share from Europe from the current 7-8% to 12%.
MOSL’s analysis suggests confidence in Persistent’s ability to execute its growth strategy despite market challenges. The firm’s focus on cost management and expansion into high-growth areas are seen as positive factors.
Investors are advised to consider Persistent’s ambitious revenue targets, its strategies for achieving them, and its plans for geographic diversification when evaluating the stock. The report indicates that MOSL sees potential in Persistent’s approach to navigating the current business landscape and achieving its long-term goals.
