BNP Paribas has upgraded India's MphasiS Ltd to "buy" from "hold" and raised the price target to 500 rupees from 420 rupees.
BNP said third-quarter earnings at the IT services provider were stronger than expected, and the company's continued execution of its strategy could prove a catalyst given "cheap" valuations.
MphasiS said on Thursday July-quarter consolidated net profit fell to 1.93 billion rupees ($29.20 million) from 2.09 billion rupees a year ago, but consolidated net sales rose to 15.40 billion rupees from 13.55 billion rupees.
The investment bank raised its earnings per share estimate for the company by 10 percent and 11 percent and rupee revenue by 3 percent and 6 percent for FY14 and FY15 respectively, it said in a note dated Monday. MphasiS shares up 1.4 percent.