Global brokerage firm Jefferies has issued a double upgrade for LTIMindtree Ltd., citing its attractive valuations. The foreign brokerage has double-upgraded LTIMindtree to ‘Buy’ from its earlier rating of ‘Underperform’ and raised its price target to ₹6,650 from ₹5,450 earlier.

The revised price target implies a potential upside of 16% from Friday’s closing levels of LTIMindtree. The stock has corrected nearly 15% from its record high level of ₹6,767.95, which the stock had hit in December 2024.

LTIMindtree shares were among the worst-performing stocks of 2024, declining 10% during the calendar year, driven by a 15% downgrade in EPS estimates and a 9% price-to-earnings (PE) derating.

However, following the recent correction, the stock is now trading at 30 times its one-year forward PE, in-line with its 5-year average, making its valuations more attractive.

Jefferies in a note said that LTIMindtree’s high exposure to North America and discretionary spending, positioning it as a potential recovery play. The recent correction appears to have factored in near-term headwinds, with the potential CEO transition being a key area to watch, the brokerage added.

In an analyst meet held in November 2024, the company highlighted that the company is hopeful of achieving $10 billion in revenue by 2031-32 from $4.3 billion in financial year 2024. The management is also hopeful of achieving this target on an organic basis by financial year 2032.

The company is focusing on scaling up key verticals like BFSI and Tech and also has plans to grow manufacturing, resources, healthcare, lifesciences and consumer verticals to triple their size.

Out of the 42 analysts that have coverage on LTIMindtree, 24 of them have a ‘Buy’ rating on the stock, while seven have a ‘Hold’ rating, and 11 have a ‘Sell’ recommendation on the stock.

Shares of LTIMindtree Ltd. are currently trading flat at ₹5,740. The stock has given flat returns to investors over the last 12 months.