Morgan Stanley resumes Tech Mahindra coverage, rates stock 'overweight'

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Morgan Stanley believes the TechMahindra's revenue growth over the next 2-3 years could surpass expectations. Morgan Stanley believes the TechMahindra's revenue growth over the next 2-3 years could surpass expectations.
SummaryThe bank believes the company's revenue growth over the next 2-3 years could surpass expectations.

Morgan Stanley resumed coverage of Tech Mahindra Ltd at "overweight" and a target price of Rs 1,650, saying shares remain undervalued and a re-rating can continue.

The bank said it believed the company's revenue growth over the next 2-3 years could surpass its and consensus expectations.

It highlighted margin surprise, acquisition of treasury shares, acquiring other Mahindra group IT companies and higher dividend payout as key to further re-rating.

Tech Mahindra shares were up 3.55 per cent at 3 pm.

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