Sagility India shares rose 4.01% in a single trading day, reflecting positive momentum after JPMorgan initiated coverage with an ‘Overweight’ rating and a target price of ₹54. As of 9:17 am, the stock was trading 3.65% higher at ₹48.30 on the NSE.
Recent stock performance:
- 1 Day: +4.01%
- 5 Days: +13.25%
- 1 Month: +72.12%
- 6 Months: +56.05%
- Year to Date: +56.05%
- 1 Year: +56.05%
JPMorgan’s analysis:
JPMorgan highlighted that Sagility is poised to benefit from secular tailwinds driven by increasing outsourcing in the US healthcare sector. With its deep domain expertise and robust client relationships, Sagility is well-positioned to leverage stable growth linked to non-discretionary healthcare spending.
- Growth Forecasts:
- Adjusted earnings are expected to grow at a compound annual growth rate (CAGR) of 18% over FY24-27E.
- Reported earnings could expand by 50%, driven by moderating deferred costs and amortization expenses.
Risks outlined by JPMorgan:
- High client concentration
- Potential in-sourcing by top clients
- Regulatory changes in the US healthcare market
- Competitive pressures from Generative AI adoption
Despite these challenges, JPMorgan expressed confidence in Sagility’s market position, indicating potential for sustained growth in the years ahead.
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