SoFi shares rise as record revenue, member growth drive strong Q3 results
Investing.com - JPMorgan has reduced its price target on KPIT Technologies (NS:KPITTECH) to INR1,400.00 from INR1,500.00 while maintaining an Overweight rating.
The firm lowered its target following a 10% drop in KPIT’s stock price on September 30, though JPMorgan noted it saw no fundamental reason for such a sharp reaction. The stock has now aligned with the broader IT sector’s underperformance, down 25% year-to-date compared to the Nifty IT index’s 22% decline.
JPMorgan expects fiscal year 2026 to be challenging for KPIT with approximately 1% de-growth on an organic basis, but forecasts a rebound to 12% growth in FY27 and 16% in FY28. The firm has cut its revenue and EPS estimates by 4-6% over FY26-28 as it moderates recovery expectations.
The new price target reflects a reduced target multiple of 36x, down from 40x previously, implying a 1.9x PEG ratio over FY26-28 earnings, slightly higher than the 1.7x for growth champions in the sector.
JPMorgan characterized KPIT as a "show me" stock going forward, suggesting that future rallies will depend on tangible proof points such as quarter-over-quarter revenue growth acceleration and large deal wins.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.