According to reports from ICICI Securities, LatentView Analytics has been upgraded to Buy from Add with a revised target price of ₹560 compared to the previous target of ₹480. The current market price stands at ₹460.30. The new target is based on an unchanged P/E of 38x FY28E EPS of ₹14.9, representing a roll-forward by two quarters.
As reported by ICICI Securities, the brokerage envisages healthy revenue growth of 6% quarter-on-quarter in USD terms during the seasonally strong Q3 period. Additionally, the company is expected to achieve 50 basis points quarter-on-quarter EBITDA margin expansion. These projections position LatentView Analytics favorably to achieve its 20% year-on-year USD revenue growth guidance in FY26.
According to the brokerage report, the majority of contract renewals due in the December quarter are likely to be completed without any price or volume drops, setting up well for FY27 growth. ICICI Securities believes LatentView is positioned to deliver strong profitable growth over FY27-28E led by strong execution on four key growth areas: mining top accounts, data engineering service line, GenAI and Agentic AI to win share from IT services peers, and expanding in BFSI, CPG and Retail sectors.
As outlined by ICICI Securities, several downside risks remain for LatentView Analytics. The company faces high client concentration with top 5 clients accounting for approximately 60% of revenue. There is also high vertical concentration with about 70% exposure to the technology vertical. Additionally, the company has higher exposure to developed markets with North America contributing around 90% of revenue, along with potential acquisition integration risks.
