Street Calls of the Week
Investing.com - CLSA upgraded LTIMindtree Ltd (NSE:LTIM) from Hold to Outperform and raised its price target to INR6,899 from INR5,361, implying a 23% upside potential.
The upgrade follows LTIMindtree’s strong second-quarter fiscal 2026 results, which exceeded CLSA’s profit after tax estimates by 11% and Bloomberg consensus by 9%. The company’s performance was driven by robust EBIT margins, favorable foreign exchange movements, and an internal cost optimization program.
CLSA highlighted that since Venu Lambu’s appointment as CEO, LTIMindtree has secured two mega deals, which have offset weakness in the BFSI and hi-tech verticals. The investment firm increased its earnings per share estimates by 10% for fiscal years 2026-2028, reflecting higher revenue growth and EBIT margin assumptions.
The analyst firm now projects a compound annual growth rate of 11% for revenue, 18% for EBIT, and 19% for EPS over fiscal years 2026-2028. These estimates are up to 12% above consensus forecasts.
CLSA also increased its target multiple to 29.9x from 25.3x, citing LTIMindtree’s proactive integration of artificial intelligence into its delivery processes and a notable increase in revenue per employee.
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