BofA update shows where active managers are putting money
Investing.com - Mizuho (NYSE:MFG) raised its price target on Genpact Ltd . (NYSE:G) to $51.00 from $48.00 on Tuesday, while maintaining a Neutral rating on the business process management company. Currently trading at $44.01, with a P/E ratio of 13.8, InvestingPro data suggests the stock is undervalued relative to its Fair Value.
The price target increase follows Mizuho’s attendance at Genpact’s 2025 Investor Day in New York City, where the company outlined its AI-first transformation strategy and introduced a medium-term financial framework with new key performance indicators. The company’s strong financial health, evidenced by its "GREAT" rating on InvestingPro’s comprehensive assessment system, supports its transformation initiatives.
Mizuho highlighted three main takeaways from the event: "GenpactNext Should Help Accelerate G’s Pivot to AI-led Solutions," "M-T Financial Framework and New KPIs Provide More Clarity on the Turnaround," and "2Q25 Business Update Provides Investors a Sigh of Relief."
The firm expressed encouragement about the investor day presentation, noting it provided greater detail on Genpact’s AI strategy moving forward, though Mizuho maintained its Neutral stance as "it is still early days" in the company’s transformation.
Mizuho also raised its revenue and earnings per share estimates for Genpact for both 2025 and 2026, contributing to the higher price target.
In other recent news, Genpact has shared its second-quarter dividend announcement, declaring a cash dividend of $0.17 per share to be paid on June 30, 2025. The company continues to emphasize its commitment to shareholders, although future dividends will depend on various financial factors and board decisions. Genpact’s Investor Day revealed strategic plans to become an AI-first company, highlighting medium-term financial targets and a focus on artificial intelligence and data-led innovation. William Blair has maintained an Outperform rating on Genpact, noting strong demand in its digital transformation and AI segment despite some deal delays. TD Cowen also raised its price target for Genpact to $55, citing positive impacts from the company’s AI strategy and a favorable outlook for revenue and earnings per share growth. Additionally, Genpact launched an AI-powered accounts payable suite aimed at enhancing finance operations, which has already been adopted by Coca-Cola (NYSE:KO) Bottlers Sales & Services. The suite is part of Genpact’s "Service-as-Agentic-Solutions" portfolio and is designed to improve processing efficiency and accuracy. The company’s recent developments underscore its strategic pivot towards advanced technologies and AI solutions.
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