UPDATE: Cowen Downgrades Genpact Ltd. (G) to Market Perform

February 14, 2022 5:33 AM EST
Get Alerts G Hot Sheet
Price: $45.64 --0%

Rating Summary:
    13 Buy, 4 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 0 | Down: 0 | New: 8
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(Updated - February 14, 2022 5:33 AM EST)

Cowen analyst Bryan Bergin downgraded Genpact Ltd. (NYSE: G) from Outperform to Market Perform with a price target of $51.00 (from $57.00).

The analyst comments "We downgrade shares of G to Market Perform and reduce our PT to $51 (~17x CY23 P/E) following a disappointing 2022 outlook (LINK) that leaves us struggling to identify near-term catalysts. Our estimates decreased and are now just in line-to-below consensus. Modestly lower growth projections reduce our CY22/23E average top-line forecasts by -1.5%, while potential y/y operating margin contraction stems from structural wage inflation pressures. This drives CY22/23E EPS estimates lower by -3%, and leaves a relatively muted 2022 earnings expansion of 7%. Considering growth fundamentals and G's relative valuation to direct BPM comps (WNS & EXLS) & the broader Services group, we think downside is well-supported; however, we see limited upside catalysts for the stock over the next several quarters beyond a modest recovery on 4Q print pressure, and move to the sidelines expecting it to fall into a holding pattern until greater cost clarity emerges."

For an analyst ratings summary and ratings history on Genpact Ltd. click here. For more ratings news on Genpact Ltd. click here.

Shares of Genpact Ltd. closed at $44.85 yesterday.

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