Gold prices bounce off 3-week lows; demand likely longer term
Investing.com - Morgan Stanley (NYSE:MS) has upgraded Mphasis Ltd. (NSE:MPHL) from Equalweight to Overweight and significantly raised its price target to INR3,500.00 from INR2,650.00, representing a 32% increase.
The upgrade is based on four key factors that have improved the company’s growth outlook. Morgan Stanley notes that Mphasis’s go-to-market strategy is resonating with clients, evidenced by an uptick in the qualified deal pipeline despite strong deal wins already secured.
The firm also highlights that the drag from the Logistics & Transportation vertical, which had been a significant overhang on the stock, appears to be behind the company. Additionally, deal win total contract value conversion to revenue is increasing, which suggests improved quarterly growth cadence going forward.
Morgan Stanley has increased its earnings per share estimates for Mphasis by 5.7% for fiscal year 2027 and 5.2% for fiscal year 2028. The new price target is based on a 30x price-to-earnings multiple applied to June 2027 estimates, along with higher long-term growth and margin assumptions.
Following recent sectoral results and stock price movements, Morgan Stanley now considers Mphasis its preferred play within its mid-cap coverage universe, noting that while it remains equally constructive on Coforge, the price target for Mphasis represents more upside potential.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.