UPDATE: Cowen Downgrades Genpact Ltd. (G) to Market Perform
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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."
Shares of Genpact Ltd. closed at $44.85 yesterday.
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Create E-mail Alert Related CategoriesAnalyst Comments, Analyst PT Change, Downgrades
Related EntitiesCowen & Co, Earnings
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