Dec 04, 2012 03:11 PM IST | Source: Moneycontrol.com

MphasiS retreats after UBS thumbs-down to Digital Risk buy

Bangalore based information technology services company MphasiS fell more than 2 percent intraday on Tuesday after the foreign research firm UBS has recommended a sell rating on the stock with a target price of Rs 285 (that is 29 percent lower compared to Monday's closing price).

MphasiS retreats after UBS thumbs-down to Digital Risk buy

Bangalore based information technology services company MphasiS fell more than 2 percent intraday on Tuesday after the foreign research firm UBS has recommended a sell rating on the stock with a target price of Rs 285 (that is 29 percent lower compared to Monday's closing price).
 
The UBS in its report said, "The Digital Risk transaction is likely to be margin dilutive and may have a minimal near-term impact on earnings."

A subsidiary of Hewlett-Packard Company had entered into definitive agreement to acquire Orlando, Florida-based Digital Risk LLC in an all cash deal worth USD 175 million plus an additional earn-out component.

Digital Risk provides highly specialised risk, compliance and transaction management solutions for the mortgage industry. The company is licensed to operate in 46 states in the US and its Making Mortgages Safe solutions suite is deployed by over 15 blue chip clients across key mortgage constituencies -- originators, insurers, issuers and investors, MphasiS, owned by computer maker Hewlett Packard, said.

At 12:24 hours IST, MphasiS slipped 1.71 percent to Rs 394.05 amid high volumes. Yesterday the share went up 3.22 percent to close at Rs 400.90.

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