On Sunday, Jefferies analyst Akshat Agarwal upgraded LTIMindtree Ltd (NS:LTIM:IN) stock rating from Underperform to Buy and increased the price target to INR6,650.00 from INR5,450.00. Agarwal highlighted that LTIMindtree's significant exposure to the Americas region and the BFSI (Banking, Financial Services, and Insurance) vertical, along with its discretionary IT spending, positions the company to potentially experience a robust revenue growth over the fiscal years 2025 to 2027, with an expected compound annual growth rate (CAGR) of 10%.
The analyst pointed out that the company's revenue growth could be coupled with an expansion in margins by 90 basis points, thanks to cost control measures. These factors are anticipated to contribute to a 16% earnings per share (EPS) CAGR from FY25 to FY27E (estimated).
Agarwal's upgrade comes after a recent approximately 18% decline in LTIMindtree's stock price, which now trades at around 30 times the 1-year forward price-to-earnings (PE) ratio. This valuation is consistent with the company's five-year average, suggesting that the stock's current price is attractive to investors.
The price target of INR6,650.00 is based on a 31 times PE ratio, which aligns with the company's current PE multiple. This new target reflects a potential upside from the previous target set by Jefferies.
LTIMindtree has not issued any public statement in response to the upgrade and revised price target at the time of this report. The company's shares will be watched closely by investors as the market reacts to Jefferies' new stance on the stock.
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