Genpact initiated with a Neutral at Mizuho

Mizuho initiated coverage of Genpact with a Neutral rating and $40 price target. The soft IT spending environment and developing concerns around GenAI’s impact on its Digital Operations business has resulted in weak stock performance, the analyst tells investors in a research note. The firm expects an IT spending recovery to drive an acceleration in growth over the next two years although Genpact’s outsized exposure to slower growing traditional business process services requires continued business mix improvement.