Cyient gains over 1% after Morgan Stanley remains overweight; sees double-digit EPS
Shares of software firm Cyient gained over 1 percent intraday on Tuesday after global research firm Morgan Stanley maintained an overweight rating on the stock. The house also hiked the price target to Rs 620 from Rs 565 per share. It expects the company to deliver double-digit revenue and earnings per share (EPS) growth over the next two years.
It believes that given the weakness in UTC, revenue in dollar terms have been cut, which is offset by margin performance adding that the mix of business changes from legacy to integrated is likely to improve margins to mid-single digits.
Morgan Stanley also expects order conversion to be reflected in the order intake in the second half of the current financial year.
At 11:47 hrs Cyient was quoting at Rs 558.05, up Rs 5.40, or 0.98 percent. It has touched an intraday high of Rs 563.75 and an intraday low of Rs 557.00.