ICICI Securities has lifted its view on Latent View Analytics, moving the stock to a BUY recommendation and setting a new target price of ₹560.
Why the Upgrade?
The firm expects the company’s revenue to grow about 6% quarter‑over‑quarter in the strong third quarter, with earnings margins improving by 50 basis points. This puts Latent View on track to meet its goal of 20% year‑on‑year revenue growth by the fiscal year 2026.
Revenue Outlook
- Quarterly revenue growth of roughly 6% in Q3.
- Most contract renewals due in the December quarter are likely to happen without price or volume cuts.
- These renewals set a solid base for growth in FY27 and beyond.
Key Growth Areas
Latent View plans to drive profit through four main bets:
- Mining top accounts – focusing on larger clients.
- Data engineering services – expanding this service line.
- GenAI and Agentic AI – aiming to win market share from traditional IT service firms.
- Sector expansion – targeting banking, consumer packaged goods, and retail markets.
Analyst Recommendation
ICICI Securities now rates Latent View Analytics as a BUY, up from its previous “Add” stance. The target price has been raised to ₹560, while the price‑to‑earnings multiple stays at 38× based on FY28 earnings estimates of ₹14.9 per share.
What This Means for Investors
The upgrade suggests the stock could see upside if the company delivers on its growth plans and margin improvements. Investors should watch the upcoming contract renewals and progress in the AI and data engineering segments.
Remember, this is just an opinion, not a prediction. Do your own research and consider your risk tolerance before making any investment decisions.