PINC downgrades rating on Mastek to ‘hold’
PINC has downgraded its rating on Mastek to ‘hold’ to factor in the weak macro environment that can impact the earnings growth of the company.
Mastek
CMP: Rs 164.20
TARGET PRICE: Rs 195
PINC has downgraded its rating on Mastek to ���hold��� to factor in the weak macro environment that can impact the earnings growth of the company. ���We believe the bigger threat to earnings is the weak macro environment, which could impart pressure on Mastek���s application development-led model leading to further uncertainty over earnings growth,��� says the report.
The broking firm���s growth outlook for Mastek has been revised primarily on volatile exchange rates. ���Mastek generates around 63% of its revenues from Europe (predominantly UK). Hence, the 9% depreciation of Great Britain Pound (GBP) against the US dollar since October 2008 is expected to impact dollar revenues if these rates sustain,��� says the report.
CMP: Rs 164.20
TARGET PRICE: Rs 195
PINC has downgraded its rating on Mastek to ���hold��� to factor in the weak macro environment that can impact the earnings growth of the company. ���We believe the bigger threat to earnings is the weak macro environment, which could impart pressure on Mastek���s application development-led model leading to further uncertainty over earnings growth,��� says the report.
The broking firm���s growth outlook for Mastek has been revised primarily on volatile exchange rates. ���Mastek generates around 63% of its revenues from Europe (predominantly UK). Hence, the 9% depreciation of Great Britain Pound (GBP) against the US dollar since October 2008 is expected to impact dollar revenues if these rates sustain,��� says the report.
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