Persistent Systems shares snapped their six-day losing streak to gain nearly 5% on Tuesday, February 18 after JPMorgan’s positive commentary on the stock.

The brokerage has an ‘outperform’ rating on the shares of Persistent Systems shares with a target price of ₹7,200 per share, an upside of nearly 30% from the previous day’s closing price.

It said Persistent Systems is the fastest-growing company in its coverage. It is set to report 21% increase in revenue and 29% in earnings CAGR over FY25-27.

The company’s management has been navigating the tough macro environment well. It added that it sees the stock’s 13% drop in the last three weeks as an opening up opportunity to buy.

The brokerage added that the company has potential for margin expansion for subcon reduction and operating leverage. It added that Persistent Systems is a credible growth compounder candidate.

Persistent Systems was also the best performing stock the Nifty IT index in 2024. Its latest December quarter results

were in-line with estimates on nearly all fronts.

The company reported a 14% increase in its net profit to ₹373 crore, marginally higher than Street estimates of ₹350 crore.

Its revenue in US dollar terms stood at $360.2 million, a growth of 5% from last quarter. A CNBC-TV28 poll had expected Persistent’s US dollar revenue to be at $362.7 million.

In rupee terms, its revenue increased by 5.7% to ₹3,062 crore, while Street had estimated it to be at ₹3,060 crore.

Its EBIT margin expanded by 90 bps to 14.9%, while a CNBC-TV18 poll had predicted 14.6%.

The company also declared an interim dividend of ₹20 per share.

Persistent Systems shares gained 4.9% in trade today to hit an intraday high of ₹5,806.50 apiece. The stock was up 4.79% at ₹5,796.25 apiece at 2.55 pm. It has gained 32.69% in the past year.

Also Read: Max Healthcare share price: Analyst upgrades stock to buy, sees 18% upside