Persistent Systems shares fell 10% to Rs 4,327 in Monday’s trading session after announcing a Euro 1.27 billion all-cash acquisition of Germany’s Nagarro. While the deal boosts its European expansion plans, Elara Securities retained a ‘Sell’ rating, citing near-term growth and margin concerns, with a Rs 4,280 target.
While the acquisition marks Persistent's biggest strategic bet to expand its European footprint and accelerate its long-term revenue ambitions, analysts at Elara Securities believe the transaction could weigh on the company's growth and profitability in the near term. The brokerage has maintained its 'Sell' rating on the stock with an unchanged target price of Rs 4,280.
