Coforge Shares Jump on $2.35B Encora Deal; Analysts Split on Valuation, EPS Impact

• Coforge shares rose over 2% after announcing a $2.35 billion all-stock acquisition of US-based engineering services firm Encora.
• The deal involves Coforge issuing 93.8 million equity shares, giving Encora shareholders 21.25% of Coforge's post-issue capital.
• Analysts are divided: Macquarie upgraded to 'Outperform' seeing long-term growth, while Elara Capital downgraded to 'Reduce' citing expensive valuation and lower organic growth for Encora.
• Motilal Oswal maintained 'Buy', highlighting positive vertical mix but stressing execution criticality for the large transaction.
• Morgan Stanley and DAM Capital view the deal as a "bold move" but likely EPS dilutive due to the expensive price tag.

Why It Matters: Coforge's $2.35B Encora acquisition sparks stock rise but divides analysts on valuation and earnings impact.