Analyst Martin Comtesse of Jefferies maintained a Buy rating on Nagarro SE, retaining the price target of €76.00.
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Martin Comtesse has given his Buy rating due to a combination of factors that highlight Nagarro SE’s strong financial performance and promising future outlook. The company demonstrated solid growth in the third quarter, with a notable increase in revenue across various industry sectors. In particular, the organic year-over-year revenue growth was impressive, especially when adjusted for constant currency.
Moreover, Nagarro SE’s profitability metrics have shown significant improvement, with the gross profit margin and adjusted EBITDA margin both experiencing substantial year-over-year increases. The net profit also surged by 68% in the third quarter, reflecting the company’s effective cost management and operational efficiency. Despite some challenges, such as potential AI disruptions, the current valuation of the stock appears attractive, suggesting that the market might be undervaluing its potential. These factors combined make the stock a compelling buy according to Comtesse’s analysis.
Comtesse covers the Technology sector, focusing on stocks such as Bechtle Aktiengesellschaft, CANCOM SE, and Kontron AG. According to TipRanks, Comtesse has an average return of -4.3% and a 37.28% success rate on recommended stocks.