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On Thursday, Jefferies reduced its price target for Genpact Ltd . (NYSE:G) shares to $52.00 from the previous $56.00, while still recommending the stock as a Buy. Currently trading at $43.23 with a P/E ratio of 14.87, InvestingPro analysis suggests the stock is undervalued, supported by a GREAT financial health score. The adjustment comes as Jefferies analysts have revised their 2025 constant currency revenue growth estimate downward by 210 basis points to 4.2%. Despite this change, their adjusted earnings per share (EPS) forecast remains steady at $3.49.
The decision to lower the revenue outlook for 2025 is attributed to delays in several large deals that were expected to contribute to the company’s financial performance. However, Jefferies anticipates that the impact of these deals will be incorporated into the company’s revenues throughout 2026. Despite these delays, Genpact maintains strong fundamentals with a healthy current ratio of 2.45 and has consistently raised its dividend for 8 consecutive years.
Jefferies analysts have also noted that Genpact’s management appears to be incorporating some additional caution into their forecasts due to the current uncertain market conditions. Nonetheless, they suggest there is a possibility for Genpact’s performance to exceed expectations if the ongoing tariff issues are resolved.
The firm’s stance on Genpact remains positive, with the reiteration of the Buy rating. This suggests that, in Jefferies’ view, the company’s stock still holds potential value for investors despite the recent adjustments to the financial projections and the external economic factors at play. For a deeper understanding of Genpact’s valuation and growth prospects, InvestingPro offers comprehensive analysis with 12 additional investment tips and detailed financial metrics.
In other recent news, Genpact Limited reported its first-quarter results, showcasing adjusted earnings per share of $0.84, which exceeded the analyst estimate of $0.78. The company’s revenue for the quarter reached $1.22 billion, slightly above the consensus estimate of $1.21 billion and reflecting a 7.4% increase year-over-year. However, Genpact issued a disappointing guidance for the upcoming periods, which overshadowed its strong first-quarter performance. For the second quarter, the company forecasts earnings per share between $0.84 and $0.86, slightly below the consensus of $0.86, and revenue between $1.21 and $1.233 billion, lower than the expected $1.248 billion. The full-year 2025 guidance was also reduced, with projected earnings per share of $3.41 to $3.52, down from the previous range and below the $3.54 analyst consensus. Revenue expectations for the year were lowered to a range of $4.862 to $5.005 billion, compared to the prior consensus of $5.08 billion. Despite these adjustments, the company’s Data-Tech-AI segment showed strong growth, with revenues up 11.1% year-over-year to $582 million, and Digital Operations revenue increased by 4.2% year-over-year to $633 million. Genpact’s President & CEO, Balkrishan "BK" Kalra, emphasized the resilience of the company’s strategy amidst a changing operating environment.
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