Suryaa Business Desk: Surya Market & Technology Bureau, Mumbai: Leading mid-tier IT services firm Coforge has posted excellent financial results for the second quarter... Surya Market & Technology Bureau, Mumbai: Leading mid-tier IT services company Coforge has received huge appreciation from the market circles as it posted excellent financial results in the second quarter. Leading domestic and international brokerages have raised their target prices on CoForge's stock significantly on record new deals order book and strong expectations of expansion in EBITA margins. Brokerages Positive Expectations – Target Price Raise: International brokerage majors are bullish on CoForge's performance after the Q2 results announcement.
Leading investment firm Jefferies CoForge reiterated its buy rating on the stock and revised its target price higher. Similarly, other research firms like Motilal Oswal, Nomura, Citi also raised their target prices praising the company's execution ability and demand outlook. Earnings, record order book strength: CoForge reported strong revenue growth in constant currency terms during Q2. Banking, financial services, insurance, travel and transportation sectors saw strong demand.
The management revealed that the new record order inflow during the entire quarter and the winning of huge contracts are strong assurances for the future revenue visibility. Signity Merger Benefits & Margin Outlook: Analysts believe Signity Technologies' acquisition process and integration plans are going smoothly, resulting in cost savings in the company's operations as well as client network expansion. The company's management announced that operating margins will improve further in the coming quarters due to operating leverage and productivity gains, which has doubled the confidence among investors.
