Credit Suisse neutral on Mahindra Satyam; trims estimates
While we continue to like Satyam's momentum with respect to deal wins, we remain concerned with Tech Mahindra‘s large telecom exposure, Credit Suisse said.
Moneycontrol Bureau
Brokerage house Credit Suisse has retained its neutral rating on Mahindra Satyam (Satyam Computer Services) after its fourth quarter earnings, and also trimmed earnings estimates for financial year 2014-15."While we continue to like Satyam's momentum with respect to deal wins, we remain concerned with Tech Mahindra’s large telecom exposure (the merger ratio is fixed and the two companies need to be seen in aggregate). We have reduced our FY14-15 estimates by 3 percent," the Credit Suisse note to clients said."Management interprets the 'outplacement' provision as prohibiting H1B visa-holders from working out of client locations. It stated that it had four delivery centres in the US and it would likely have to set up more such centres if the bill is passed in the current form," the CS note said.Also read: Mahindra Satyam Q4 net jumps 468% QoQ on exceptional gain Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
