FTSE 100 today: Index gains as inflation holds steady, GSK to invest $30 bln in US
Investing.com - UBS initiated coverage on Mphasis Ltd. (MPHL:IN) with a Buy rating and set a price target of INR3,370.00, citing potential revenue growth recovery that is not fully reflected in the current share price.
The financial services firm believes headwinds from Mphasis’s large customer DXC, its subsidiary Digital Risk, and vertical-specific issues have largely subsided, positioning the company for accelerated growth.
UBS projects a compound annual growth rate (CAGR) of 10% for Mphasis between fiscal years 2025 and 2028, a significant improvement from the 2% CAGR estimated for fiscal years 2022 to 2025.
Current valuations, while trading at a premium to the three-year average, only price in a 7-8% revenue CAGR over fiscal years 2025 to 2030, according to UBS calculations, compared to their estimate of 11% for that period.
The firm sees room for upside in Mphasis shares and maintains a positive near-term outlook as the company’s growth begins to catch up with mid-cap peers.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.