JPMorgan analyst Tien-tsin Huang downgraded Genpact to Neutral from Overweight with a price target of $50, down from $55. The company should "somewhat benefit" from a relatively recurring business, but Street estimates may not have baked in risk to project based/discretionary mix within its artificial intelligence, data-tech segment, Huang tells investors in a research note. Further, Street margin estimates already represent solid expansion next year, "which offers more downside than upside potential," says the analyst. He likes Genpact’s long-term positioning but sees near-term risks to estimates.
Published first on TheFly
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