Microvast Holdings announces departure of chief financial officer
Investing.com - JPMorgan downgraded L&T Technology Services Ltd. (LTTS:IN) from Overweight to Neutral on Thursday, while reducing its price target to INR4,100.00 from INR5,000.00, citing extended headwinds in the company’s mobility business.
The bank expects LTTS’s mobility segment, which represents 33% of revenues in FY25, to face prolonged challenges from delays in deal ramp-ups from automotive OEMs amid persistent tariff-related uncertainty in the sector. JPMorgan forecasts this will likely drag down the company’s growth for FY26 to below 10%, falling short of LTTS’s guidance for double-digit growth.
The firm also noted that organic growth could drop to approximately 3%, below the company’s guidance of improving upon FY25’s 6.7% figure. Continued headwinds in the Hitech segment, which accounts for 37% of revenues, are expected to place additional pressure on growth.
JPMorgan predicts margins will experience a cascading impact due to negative operating leverage. The bank has cut its earnings estimates for LTTS by 9-11%, reflecting both revenue and margin reductions.
The downgrade includes a reduction in the target price-to-earnings multiple from 32x to 28x, with JPMorgan anticipating that LTTS will lower its FY26 revenue guidance over the next four months, potentially serving as a negative catalyst for the stock.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.