JP Morgan downgrades LTM on "unusual acquisition" of Randstad's units

LTM

25/05/2026 05:31

** India's LTM LTIM.NS down 1.6% at 3,940.90 rupees; set for fourth straight session of losses

** Top loser on Nifty IT .NIFTYIT index, which is up 0.1%

** JP Morgan downgrades IT company to "neutral" from "overweight", cuts price target by ~12% to 4,500 rupees

** IT company last week announced plan to acquire Randstad's tech and consulting business in Europe and Australia at an enterprise value of 160 million euros

** JP Morgan says it does not see obvious horizontal service line or vertical synergies from the acquisition as Randstad focuses on digital engineering and cybersecurity services

** Highlights target company's revenue fell sharply in last two years, while business operates at much lower 4%-5% margins

** Brokerage calls it an "unusual acquisition that can distract management and signals struggling organic initiatives"

** Stock rated "hold" on average by 37 analysts, median PT at 4,811 rupees, per LSEG data

** YTD, LTIM down 35%

 (Reporting by Vivek Kumar M)

 ((VivekKumar.M@thomsonreuters.com;))