Brokers’ call: Deutsche upgrades Financial Technologies

Deutsche Bank has upgraded Financial Technologies’ (FT) ratings to ‘Buy’ with a revised target price of Rs 1,350 on account of a 37.5% increase in FY13E for FT, primarily driven by benefits from operating leverage and material improvement in performance of key group companies like MCX, IEX and NSEL, which now contribute Rs 552 per share to FT’s target price.

FY12 marked a significant change in FT’s revenue profile, with 21% revenue contribution from software maintenance solutions. With the improvement in transaction volumes of key exchanges, revenue contribution from this source is likely to increase and should drive operating leverage.