Persistent Systems’ shares jumped 3% following JP Morgan’s decision to maintain its Overweight rating on the company, citing its strong growth potential and impressive deal pipeline. JP Morgan forecasts a 30% upside for the stock, driven by robust earnings growth, operational efficiencies, and a clear long-term revenue target.
The brokerage predicts a 21% revenue CAGR and a 29% PAT CAGR for FY25-27, reflecting the expanding business opportunities for Persistent Systems. With record-high deal activity, JP Morgan expects high-teens revenue growth in FY26. Furthermore, Persistent Systems has set an ambitious $5 billion revenue target by FY31, implying a 26% CAGR from FY27-31.
JP Morgan also highlights margin expansion potential, primarily driven by the reduction in subcontractor dependency and enhanced operating leverage. At the last traded price of ₹5,540, the brokerage believes Persistent Systems remains a promising long-term growth stock with significant upside.
Persistent Systems shares opened at ₹5,594.25, reaching a high of ₹5,747.45 and a low of ₹5,562.10 during recent trading. The stock has experienced significant volatility, with a 52-week high of ₹6,788.90 and a low of ₹3,232.05.
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