Shares of Persistent Systems are in focus after the company reported its Q1FY26 results, with brokerages offering mixed views. Bernstein maintained its bullish stance with an Outperform rating, while Nomura retained a Neutral call, both highlighting valuation sensitivity despite steady performance.
Bernstein: Strong sectoral growth, reiterates $2B FY27 revenue goal
Bernstein maintained an Outperform rating with a target price of ₹6,300, noting that the quarter was largely in line. Revenue grew 3.3% QoQ in constant currency and 18.8% YoY, with strong momentum in BFSI (+9%) and Hi-Tech (+4%), while healthcare declined 2%.
Management acknowledged macro uncertainties delaying ramp-ups but reiterated its medium-term goal of $2 billion in revenue by FY27. However, Bernstein flagged that given the stock’s premium valuation, some near-term correction cannot be ruled out.
Nomura: Mixed quarter, valuation keeps view cautious
Nomura retained a Neutral rating with a target price of ₹5,510, citing a mixed performance. While deal wins remained steady, management pointed to slowing decision-making by clients. Margins were stable, aided by lower ESOP charges. Nomura trimmed its FY26–27 EPS estimates by 3% and maintained a cautious stance due to what it termed as rich valuations.
Disclaimer: The brokerage views expressed above are solely those of the respective firms. This article does not constitute investment advice. Readers are advised to consult their financial advisor before making any investment decisions.
