ICICI Securities keeps Reduce rating on LTM with Rs 3,720 target
ICICI Securities maintains a Reduce rating on LTM with a Rs 3,720 target price. Analysts see a tough path to required revenue growth in the second half of FY27.
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what happened
According to Moneycontrol, an ICICI Securities research report says LTM's revenue growth and EBIT margins were broadly in line with both consensus and the broker's own estimates. Management expects revenue growth to pick up from the third quarter, citing healthy ACV growth in Q2FY27, AI revenue that rose 12.7% quarter on quarter and makes up 13.4% of total revenue, and a return to growth for the Technology vertical in Q3.
To reach organic growth of about 6% year on year in USD in FY27, as in FY26, the company would need a 3.2% CQGR in the second half. The broker calls this a tall ask, since non-AI revenue remains subdued and fell 0.6% quarter on quarter in USD terms in Q2FY27. The Rs 3,720 target is based on EPS of Rs 233 for Q3FY28 to Q2FY29E, with the target multiple unchanged at 16x. The rating is maintained at Reduce.
why it matters
This is one broker's view rather than a broad market signal. For investors in IT services, the key question is whether growth in the AI business can offset weakness in the rest of the revenue base.
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sources
- Reduce LTM; target of Rs 3720: ICICI Securities — moneycontrol.com, 19 October 2026 at 09:33 UTC
prepared by the newsmetry newsroom with ai assistance from the sources listed below. not investment advice.
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