Persistent Systems Shares Drop 4% Amid Mixed Brokerage Views Post Q3 Earnings

• Persistent Systems shares fell 4% on Wednesday after reporting Q3 earnings, leading to mixed brokerage reactions.
• CLSA maintained a "high conviction outperform" rating, raising its price target to ₹8,865, citing strong revenue growth and profitability.
• HSBC issued a "hold" rating with a ₹6,560 target, acknowledging strong growth but noting market expectations are fully priced in.
• Nomura gave a "neutral" rating and a ₹6,100 target, preferring Coforge within the midcap IT space despite Persistent's margin beat.
• Q3 saw 4.1% constant currency revenue growth, beating estimates, with margin gains from AI platforms, though these may not recur.

Why It Matters: Persistent Systems shares declined due to mixed brokerage views despite strong Q3 earnings and AI-driven growth.