March 28, 2018 / 4:16 AM / 4 months ago

BUZZ-India's Persistent Systems falls on weak Q4 IP revenue forecast

** Persistent Systems Ltd slides as much as 9.9 pct to 706.25 rupees - lowest since Feb 2

** The software services provider forecasts Q4 IP revenues to fall about $8 mln sequentially

** Decline in IP revenues will impact revenue and EBIDTA margin in Q4 - company said in a filing to exchanges on Tuesday

** This is a quarter-specific phenomena and things should normalise in FY19 - Credit Suisse

** Continue to expect healthy revenue growth over FY18-20, helped by digital, services business recovery and IoT - CS adds; maintains “outperform” rating, target price at 960 rupees

** While there is seasonality in Q4, the extent of decline is a negative surprise (relative to brokerage’s expectations) and appears to be lower than the company’s expectations - Morgan Stanley; maintains “overweight” rating, target price at 1,025 rupees

** 25 of the 33 analysts covering the stock have a “buy” or higher rating, 2 have “hold” while 6 rate it at “sell” or lower; median PT is 857.50 rupees - Thomson Reuters data

** More than 315,000 shares traded, 1.6 times their 30-day moving avg

** Up to Tuesday’s close, stock had risen 31.6 pct in 12 months

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