Reduce Oracle Financial Services Software Ltd., target Rs 3488.0 : Kotak Securities Limited

Kotak Securities Limited has Reduce call on Oracle Financial Services Software Ltd. with a target price of Rs 3488.0. The current market price of Oracle Financial Services Software Ltd. is 3351.85. Time period given by analyst is Intra Day, when Oracle Financial Services Software Ltd. price can reach defined target. Kotak Securities said that while the Q1FY16 numbers were above expectations, macro headwinds from Brexit and weak discretionary spends in US BFSI segment pose medium term challenges. It said it moderates its valuations in line with IT services peers. It pegged PE at 20.5x FY17 and 18.1x FY18 estimated earnings. It said its target valuations are at a premium to Infosys' valuations. But it said any move from the parent to de-list the company from Indian bourses may provide an upward bias to the stock.