Genpact’s Strategic Growth and Technological Advancements Drive Buy Rating Despite Lowered Guidance

William Blair analyst Maggie Nolan has maintained their bullish stance on G stock, giving a Buy rating yesterday.

Maggie Nolan’s rating is based on Genpact’s ability to surpass consensus estimates for both revenue and earnings in the first quarter, despite the company lowering its full-year guidance due to macroeconomic uncertainties and delayed deals. The management’s decision to remove these deals from guidance reflects a cautious approach, yet they maintain confidence in the company’s DTAI segment, which constitutes a significant portion of their revenue.
Furthermore, Genpact’s strategic initiatives, such as enhancing partnerships and developing comprehensive DTAI solutions, are seen as positive steps towards growth. The company’s achievements, like obtaining the AWS Generative AI Competency and expanding their GenAI solutions, demonstrate progress in their technological capabilities. Additionally, efforts to streamline operations, such as automating processes, indicate a focus on efficiency. These factors collectively contribute to Maggie Nolan’s Buy rating for Genpact’s stock.

In another report released yesterday, TD Cowen also maintained a Buy rating on the stock with a $53.00 price target.

Based on the recent corporate insider activity of 39 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of G in relation to earlier this year.