Morgan Stanley has maintained an ‘Overweight’ rating on Cyient, setting a target price of ₹1,500, indicating a potential upside of 2% from the current market price. The brokerage highlights Cyient’s strong leadership, with the new CEO bringing extensive sales experience, having managed a $1.5 billion P&L at HCL Technologies across sectors aligned with Cyient’s portfolio, including Hitech, Telecom, Semiconductors, and Manufacturing.
Morgan Stanley identifies three critical areas for Cyient’s strategic turnaround:
- Shift to Long-Term Deals: The company aims to transition from short-term project-based contracts to longer-term annuity deals for improved revenue visibility.
- Guidance Clarity: Morgan Stanley emphasizes the need for enhanced forecasting to prevent future guidance misses.
- Expand Auto ER&D: Cyient plans to scale up its Automotive Engineering practice, potentially through acquisitions, as this segment is identified as a high-growth area.
The brokerage remains optimistic about Cyient’s strategic direction, projecting growth driven by improved deal visibility and expansion in the high-growth automotive engineering domain.
Disclaimer: This article is for informational purposes only and should not be considered as investment advice. Please consult your financial advisor before making any investment decisions.
