MindTree shares fall after Credit Suisse downgrade
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Shares in mid-size IT firm MindTree slumped Friday after global investment bank Credit Suisse downgraded the stock to "neutral" from "outperform" and cut the target price to Rs 765.
At 10.30 a.m., the stock traded 3.1 per cent lower at Rs 674 on the Nifty index, while the NSE was down 0.53 per cent at 17,446.
The downgrade came on account of the sharp run up in the stock over the last six months. Shares in the company have gained 80 per cent year-to-date. In contrast, the BSE Sensex has gained only 13 per cent in 2012. The outperformance in stock prices had come on the back of strong revenue growth.
Credit Suisse said the company's product engineering business appears weaker than earlier anticipated and is vulnerable to macroeconomic shocks.