Genpact Limited receives “hold” rating and increased target price from TD Cowen in latest research report
November 12, 2024
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Genpact Limited ($NYSE:G) is a global professional services company that offers digital transformation, analytics, and process management services to clients across various industries. In the latest research report released by TD Cowen, a leading investment banking firm, Genpact Limited received an increased target price of $45.00 from their previous target of $40.00. This update was announced on Friday and came with a “hold” rating for the company’s stock. This update also shows that TD Cowen has confidence in the company’s growth potential and is optimistic about its future performance. This means that the firm believes the stock is fairly valued at its current price and there is no significant upside or downside potential. A “hold” rating is typically given when the stock’s current price is in line with its estimated intrinsic value.
The research report from TD Cowen also highlighted some key factors that contribute to their positive outlook for Genpact Limited. These include the company’s strong global presence, diverse range of services, and its ability to deliver value to clients through digital transformation and analytics solutions. Furthermore, Genpact Limited has shown solid financial performance over the years with consistent revenue growth and a strong balance sheet. This has allowed the company to invest in new technologies and expand its capabilities, positioning itself as a leader in the professional services industry. This update is a testament to the company’s strong performance and growth potential, making it an attractive investment option for investors.
Price History
This news was met with a positive response from investors, as on Friday, the company’s stock opened at $45.21 and closed at $45.94, marking a significant increase of 9.88% from the previous day’s closing price of $41.81. The “hold” rating given by TD Cowen indicates that the firm expects the stock to perform in line with the overall market.
Additionally, the increased target price set by TD Cowen further reinforces their positive outlook for Genpact’s stock. This news comes at a time when Genpact has been consistently performing well in the market. The company, which provides digital transformation and outsourcing services to global clients, has reported strong financial results in its recent quarters. Furthermore, Genpact has also been actively expanding its global footprint through strategic acquisitions and partnerships. In April, the company announced the acquisition of Enquero, a leading digital engineering and analytics services company. This move will further strengthen Genpact’s capabilities in data engineering and analytics, allowing them to better serve their clients’ evolving needs. With the ongoing digital transformation across industries and increasing demand for outsourcing services, Genpact is well-positioned to continue its growth trajectory in the coming years. This news has been well-received by investors and further reinforces Genpact’s position as a leading player in the digital transformation and outsourcing industry. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Genpact Limited. More…
| Total Revenues | Net Income | Net Margin |
| 4.48k | 631.25 | 14.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Genpact Limited. More…
| Operations | Investing | Financing |
| 490.81 | -78.94 | -483 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Genpact Limited. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 4.81k | 2.56k | 12.53 |
Key Ratios Snapshot
Some of the financial key ratios for Genpact Limited are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 6.5% | 10.9% | 14.1% |
| FCF Margin | ROE | ROA |
| 9.7% | 18.5% | 8.2% |
Analysis
After closely examining the financials of GENPACT LIMITED, I can confidently say that this company has a strong financial standing. Its cashflows and debt have been carefully managed, resulting in a high health score of 8/10 on the Star Chart. This indicates that GENPACT LIMITED is capable of weathering any potential crises without the risk of bankruptcy. Based on our analysis, GENPACT LIMITED falls under the category of ‘rhino’ companies. These are companies that have achieved moderate revenue or earnings growth. While they may not be the fastest growing companies, they have shown consistency and stability in their financial performance. Investors who are interested in stable and reliable companies would find GENPACT LIMITED appealing. Its strong dividend payments, profitability, and medium asset and growth metrics make it an attractive option for those seeking consistent returns on their investments. GENPACT LIMITED’s strong financials also make it an attractive option for risk-averse investors. The company has shown its ability to effectively manage its cashflows and debt, indicating a level of prudence and careful planning in its operations. This gives investors a sense of security knowing that their investments are in capable hands. Overall, GENPACT LIMITED may attract a wide range of investors, from those seeking steady returns to those looking for a safe investment option. Its financial health and performance make it a desirable choice for anyone looking to invest in a strong and stable company. More…
Peers
The company has a strong focus on data analytics and artificial intelligence, and has been successful in implementing these technologies for its clients.
– Cognizant Technology Solutions Corp ($NASDAQ:CTSH)
Cognizant Technology Solutions Corp is a leading provider of information technology, consulting, and business process outsourcing services. The company has a market cap of $30.95 billion and a return on equity of 18.92%. Cognizant Technology Solutions Corp provides a full range of services, including application development and maintenance, infrastructure management, and business process outsourcing. The company serves clients in a variety of industries, including banking and financial services, healthcare, manufacturing, retail, and telecommunications.
– ExlService Holdings Inc ($NASDAQ:EXLS)
ExlService Holdings Inc is a provider of operations management and analytics services. The company has a market cap of 5.31 billion as of 2022 and a return on equity of 15.13%. The company’s operations management and analytics services help businesses optimize their operations and improve their decision-making.
– Larsen & Toubro Infotech Ltd ($BSE:540005)
Larsen & Toubro Infotech Ltd, a subsidiary of Larsen & Toubro Ltd, is an Indian multinational provider of information technology, consulting and business process outsourcing services. Headquartered in Mumbai, the company has over 43,000 employees across 46 countries.
Larsen & Toubro Infotech’s market cap as of 2022 is 834.42B, with a return on equity of 23.67%. The company is a leading provider of information technology, consulting and business process outsourcing services, with a strong presence in India and across 46 countries.
Summary
TD Cowen, a leading investment firm, recently revised their target price for Genpact Limited from $40.00 to $45.00 and maintained a “hold” rating for the company. This suggests that TD Cowen believes Genpact’s stock price will continue to rise, but not at a significant enough rate to warrant a “buy” recommendation. This analysis indicates that Genpact is performing well and has potential for growth, but may not be the most lucrative investment opportunity at the current time. Investors should continue to monitor Genpact’s financial performance and market trends to make informed decisions about their investments in the company.
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