Emkay Global Financial Services has recommended a hold rating on Satyam Computer Services with a target price of Rs 212 in its December 29, 2008 research report. "Satyam has postponed the board meeting scheduled for 29 Dec’08 to consider a share buyback to 10th Jan’09 citing lack of decorum. We highlight that Satyam’s promoter’s stake at 8.6% was already low and with media reports talking of a further reduction in promoters’ stake, it might be easier for a takeover to go ahead. We believe that the appointment of a financial consultant rather than a consulting organization as an advisor to recommend possible actions could also increase the chances of a financial/strategic investor stepping in. (though believe it might take some time for this to happen) We believe that this should help Satyam’s stock to stall the fall as well as provide a floor to it (at Friday’s close of Rs 135, Satyam traded at a FY09 EV/EBITDA of 1.5x). Hold, target price of Rs 212," says Emkay Global Financial Services' research report.

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