LTIMindtree stock rating downgraded to Sell by Investec despite price target hike

Published 20/07/2025, 07:38
LTIMindtree stock rating downgraded to Sell by Investec despite price target hike

Investing.com - Investec (LON:INVP) has downgraded LTIMindtree Ltd (NSE:LTIM) from Hold to Sell while raising its price target to INR4,960.00 from INR4,690.00.

The downgrade comes despite LTIMindtree reporting quarterly results in line with expectations, with 0.8% constant currency revenue growth matching analyst estimates. Investec noted that 75% of the incremental revenue during the quarter was driven by the BFSI (Banking, Financial Services and Insurance) and Retail sectors.

The research firm expressed concerns about the lack of confidence in broad-based growth going forward. While LTIMindtree is expected to benefit from executing a large deal in the agricultural sector in Q2FY26, growth in BFSI and Hitech segments—which account for approximately 60% of revenue—could remain relatively muted.

Investec adjusted its earnings per share estimates for FY26/27/28E by -1.2%/1.3%/0.7% respectively. The firm rolled over its valuations to Q2FY28 TTM (trailing twelve months) for the new price target calculation.

The downgrade decision was influenced by the stock’s 27% return since its bottom on April 7, 2025, combined with "no meaningful change in business outlook," according to Investec’s analysis.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.