Edelweiss is bullish on Cyient has recommended buy rating on the stock with a target price of Rs 785 in its research report dated May 04, 2018.
Edelweiss' research report on Cyient
We attended Cyient’s analyst meet wherein we gained better insights about the company's strategy in the fast-changing technology environment. Management showcased their 2030 vision ‘AGILE’. The ‘AGILE’ framework entails ambition, growth, investment, leadership and execution. Management also reiterated their ‘S3’ strategy and focus on transitioning from services to solutions approach by 2030 via its calculated risk model. We believe while the stock has run up sharply post the Q4FY18 results and will witness time correction, optimistic outlook for ER&D and connected ecosystem are big long-term opportunities. Maintain ‘BUY’ with TP of INR785 (16x FY20E EPS).
Cyient gave detailed insights of its strategy and client relationships (via Bombardier) as well as management’s strengths and game-plans. Management also retained their outlook across parameters as mentioned in the Q4FY18 earnings call. We believe the stock has had a good run up recently and will witness time correction. However, sanguine outlook for ER&D space implies good returns for long-term investors. Maintain ‘BUY/SP’ with a target price of INR785 (16x FY20E EPS).
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