June 14, 2018 / 4:26 AM / 2 months ago

BUZZ-India's MindTree sees worst day in over a month on Citi downgrade

** Shares of MindTree Ltd slide as much as 3.6 pct to 992 rupees, their biggest intraday percentage fall since May 2

** Citi Research downgrades stock to “sell” from “neutral; raises price target to 970 rupees from 875 rupees

** MindTree’s business has seen good turnaround, but this is priced into strong returns delivered in past 6 months - Citi said in a note

** While near-term visibility looks decent, any slowdown from its top customer - which contributed 18 pct to overall revenues in Q4 - is a risk

** Justifying multi-year high valuations and significant premium to sector is difficult, given volatile performance over past few years, sectoral challenges and client concentration risk

** More than 694,000 shares traded vs. 30-day moving avg of 1.4 mln

** 8 of the 27 analysts covering the stock have a “buy” or higher rating, 9 have “hold” while 10 rate it at “sell” or lower; median PT is 850 rupees - Thomson Reuters data

** Up to Wednesday’s close, stock had risen 68 pct compared with a 20.3 pct gain in the Nifty IT index this year

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