Persistent Systems shares rise 2%, hit 10-month high after CLSA reiterates bullish call

The shares of Persistent Systems rose more than 2 percent on November 24 after CLSA reiterated its bullish call for the stock, with a target price implying strong upside potential.

The shares of the IT company hit a day's high at Rs 6,426.50 apiece on Monday, emerging as one of the top gainers on the Nifty IT, Nifty Midcap 50 and Nifty Midsmall IT and telecom indices.

Here's what CLSA said:

CLSA reiterated its 'high conviction outperform' rating for the stock, with a target price of Rs 8,270 apiece. This implies an upside potential of more than 31 percent from the stock's previous closing price of Rs 6,296.50 apiece.

The international brokerage cited "proactive" deal wins, stellar execution and focus on artificial intelligence (AI) as key reasons for its bullish call for the stock, Reuters reported. It sees strong demand and pipeline for Persistent Systems in BFSI vertical, followed by hi-tech and healthcare segments.

Persistent Systems share price history:

Persistent Systems shares rose more than 4 percent in the past five days, and over 9 percent in the past one month. The stock surged nearly 12 percent in the past six months, but is down more than 1 percent in 2025 so far. Notably, Nifty IT index meanwhile is down over 12 percent in 2025 so far.

The IT stock’s P/E ratio currently stands at 65.40. After hitting a 52-week high of Rs 6,788.90 apiece in December last year, the stock dropped nearly 39 percent in less than four months to hit a 52-week low of Rs 4,148.95 apiece in April this year. The stock has recovered nearly 55 percent in seven months since then.

IT stocks surge:

The IT pack is trading higher on Monday, as investors priced in a higher probability of a December rate cut by the US Federal Reserve. The Nifty IT index rose nearly 2 percent to its day’s high of 37,554.35.

New York Fed President John Williams, a permanent voter on rate policy and vice chair of the rate-setting Federal Open Market Committee, said on Friday that interest rates can fall "in the near term".

"I view monetary policy as being modestly restrictive...Therefore, I still see room for a further adjustment in the near term to the target range for the federal funds rate to move the stance of policy closer to the range of neutral," Williams said. Investors now put a nearly 60 percent chance of a 25 basis point cut at the U.S. central bank's December meeting, reversing what had been strong conviction that the Fed would pause due to concerns about inflation.

A rate cut in the US is expected to increase the discretionary spending limit, which in turn benefits IT companies which derive a significant portion of their revenue from the North American market.