Goldman Sachs Cuts LTIMindtree Target Price by 15% Amid Neutral Rating

Goldman Sachs has maintained a Neutral call on LTIMindtree stock, but with a target price of Rs 3,870 - around 15% below its current market value. The brokerage firm sees the shares as running ahead of what its numbers support, but stops short of issuing a Sell rating.

According to Goldman Sachs, LTIMindtree's revenue growth this year is expected to be similar to last year, with the third quarter likely stronger than the second. The company has reported month-on-month improvement in the BFSI vertical and has overcome challenges in the technology vertical.

The management highlighted some pockets of demand pressure for the industry from AI, alongside other growth areas. They expect EBIT margins to improve in FY27, despite headwinds last year. The acquisition of Randstad is expected to be integrated in the third quarter of FY27 and will likely contribute to further organic margin improvement.

Goldman Sachs notes that a Neutral rating is consistent with steady operational commentary rather than weak performance. The gap between the target price and current market value is a statement about valuation, not a reflection on the business's fundamentals.