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Last Updated : Jul 30, 2019 01:00 PM IST | Source: Moneycontrol.com

Hold Persistent Systems; target of Rs 575: ICICI Direct

ICICI Direct recommended hold rating on Persistent Systems with a target price of Rs 575 in its research report dated July 29, 2019.

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ICICI Direct's research report on Persistent Systems


Persistent reported another muted quarter both on revenue and margin front. US$ revenues grew 1.1% QoQ to $119.6 million (below our 2.3% QoQ growth estimate) with softness in IP led business for a fourth consecutive quarter. Further, digital also reported a decline of 5.9% sequentially. Adjusted EBITDA margins dragged 180 bps to 15.6% (from adjusted margins of 17.4% in Q4FY19) mainly due to muted performance in high margin IP led business.


Outlook


Hence, we maintain our HOLD stance with a revised target price of Rs 575/share (12x FY21E EPS).


For all recommendations report, click here

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First Published on Jul 30, 2019 01:00 pm
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