Analyst Bryan Bergin from TD Cowen maintained a Buy rating on Genpact (G – Research Report) and decreased the price target to $53.00 from $58.00.
Bryan Bergin has given his Buy rating due to a combination of factors that suggest Genpact’s current challenges are more about timing than fundamental issues. Despite the company’s reduction in its 2025 growth outlook, which was primarily due to delays in decision-making on large deals, Bergin believes these setbacks are driven by external factors rather than poor company execution. The delays were notably linked to industries with tariff exposures, such as Manufacturing and CPG/Retail, affecting larger deals that are expected to have significant durations.
Despite these challenges, Genpact’s fundamentals remain strong, with continued investment in high-value talent and a robust client retention rate. Bergin sees the company’s cautious approach to its 2025 outlook as a prudent measure to navigate potential future volatility, which could position it for outperformance if macroeconomic conditions do not worsen significantly. The analyst suggests that while patience is required, the current share pressure could present a buying opportunity, given the company’s solid pipeline and strategic adjustments.
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.