On Monday, Jefferies maintained its Hold rating on HCL Technologies (HCLT:IN) but raised the price target to INR1,630 from INR1,390. The adjustment follows the company's first-quarter results, which aligned with estimates, while profits exceeded expectations due to the gains from the StateStreet divestiture.
HCL Technologies has expressed confidence in achieving revenue growth in the second quarter despite the impact of the StateStreet divestiture. The firm has also reiterated its growth and margin guidance for the fiscal year 2025, aiming for 3-5% growth and an 18-19% margin.
In light of the recent financial outcomes, Jefferies has made slight modifications to its forecasts for HCL Technologies. The financial firm anticipates that HCLT will report a 6% compound annual growth rate (CAGR) in constant currency revenue and a 9% CAGR in earnings per share over the 2024-2027 period.
The revised price target of INR1,630 is based on a 23 times price-to-earnings (PE) ratio, as per the analyst's comments. This valuation reflects the firm's performance and the adjustments made to Jefferies' estimates.
HCL Technologies' performance and the subsequent rating affirmation and price target increase by Jefferies provide insight into the company's current financial health and future prospects as perceived by the market analysts.
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