16-Oct-2026 08:20:47
PERSISTENTGeneral news
CLSA on Persistent ; High Conviction O-P, TP Rs 6488
2Q mixed, with revenue 2% ahead of consensus but Ebit/adj. PAT 2%/12% below consensus Primary driver of miss was an elevated level of interest expense (due to increased current liabilities) and higher FX losses. As a result, lower our FY27-29 EPS forecasts 6-9% Still forecast FY27-29 revenue/Ebit/EPS Cagrs of 16%/19%/22% Have not incorporated Nagarro in estimates but believe, post-integration, US$5bn of revenue by FY31 could be in sight Assuming a 3x EV/sales multiple, additional debt raised to be paid fully via internal accruals and additional FCF generation to take care of equity dilution; PSYS’s market cap could potentially double over next four years.
PERSISTENT SYSTEMS LTD