Shares of Persistent Systems Ltd today gained 2.5 per cent as CLSA has begun coverage on the stock with a “buy’’ rating and fixed a target price of Rs 1,000.
It says that the company is a closest digital pure play among Indian IT companies.
The brokerage adds that the company can expand its addressable market beyond a hi-tech vertical that can power revenue CAGR from 14 per cent over FY12-15 to 17 per cent during FY15-18.
The stock has 12 “buy’’, 8 “hold’’ and 8 “sell’’ ratings, according to Thomson Reuters data.
The shares trade at 18.6x of 1-year forward earnings vs 16.7x for rivals.