Mindtree update: Analysts upgrade target prices post stellar results
Last updated: 20 Jan, 2021 | 06:51 am
Global investment banking giants Goldman Sachs and Morgan Stanley have given positive commentaries on Mindtree post its Q3 results (Click here to read our analysis of Mindtree’s Q3 results).
- Morgan Stanley has maintained an ‘equal-weight’ rating on the stock, however, it raised the price target to Rs 1,645 from Rs 1,440. Goldman Sachs reiterated a ‘buy’ rating with a target price of Rs 1,998.
- Revenue growth recorded in this quarter has been the highest in over a decade and margins are at an 11 year high.
- Going forward, the company is confident of achieving industry-leading growth with 20%+ margins. Morgan Stanley believes that this margin benefit could be used to drive growth. Goldman Sachs expects margins to be at 17.5% over FY21-23.
- Besides the above foreign firms, Motilal Oswal, Prabhudas Liladher and Emkay also raised their target prices. However, Kotak Institutional Equity has maintained a Sell rating with a target price of ₹1,580.