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NA9: Share Buybacks Are Expected To Drive Future Shareholder Value

Cloud And AI Adoption Will Expand Japan And Middle East

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NA9
AnalystConsensusTarget
Not Invested
Published 29 Jan 2025

Update shared on 14 Dec 2025

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AnalystConsensusTarget's Fair Value
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1Y
-4.9%
7D
4.1%

Analysts have modestly revised their price target for Nagarro, keeping fair value broadly unchanged at €90.25. They have slightly lowered the discount rate and forward P/E assumptions as they factor in a marginally improved risk profile and stable long term growth and profitability expectations.

What's in the News

  • Nagarro became an OpenAI Services Partner to help enterprises across Asia Pacific adopt OpenAI technologies, including the OpenAI API and ChatGPT Enterprise, focusing on scalable and responsible generative AI deployments (company announcement).
  • The company reaffirmed a disciplined inorganic growth strategy centered on smaller tuck in acquisitions to fill specific technological, geographic and client gaps, avoiding large transformative M&A (earnings call commentary).
  • Nagarro indicated it is close to announcing a small but strategic acquisition in the Japan India tech services corridor to deepen its regional capabilities and client reach (earnings call commentary).
  • The company began share repurchases under a shareholder mandated program, authorizing buybacks of up to 10% of registered share capital, including a plan to repurchase up to 450,000 shares for €13.78 million through February 28, 2026 (buyback program announcement).

Valuation Changes

  • Fair Value: Unchanged at €90.25, indicating no material shift in the long term intrinsic value estimate for Nagarro shares.
  • Discount Rate: Fallen slightly from 7.80% to approximately 7.67%, reflecting a modestly improved perceived risk profile.
  • Revenue Growth: Effectively unchanged at about 6.57%, signaling stable expectations for Nagarro's long term top line expansion.
  • Net Profit Margin: Essentially flat at roughly 8.58%, suggesting no meaningful revision to long term profitability assumptions.
  • Future P/E: Edged down slightly from 10.88x to about 10.84x, implying a marginally lower valuation multiple applied to forecast earnings.

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Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.