Nagarro (XTRA:NA9) Is Up 5.2% After OpenAI Asia-Pacific Partnership Announcement - Has The Bull Case Changed?

• Earlier this week, Nagarro announced it has become an OpenAI Services Partner for Asia Pacific, helping enterprises adopt tools such as the OpenAI API and ChatGPT Enterprise to build and scale generative AI solutions.
• This partnership broadens Nagarro’s role in advising, engineering, and embedding generative AI into core business workflows, potentially deepening client relationships and expanding higher-value service offerings across the region.
• We’ll now examine how Nagarro’s new OpenAI Services Partner role in Asia Pacific could influence its investment narrative and growth focus.

Find companies with promising cash flow potential yet trading below their fair value.

Nagarro Investment Narrative Recap

To own Nagarro, you need to believe it can translate its digital engineering and AI expertise into durable, higher margin work while managing FX volatility and soft IT demand. The new OpenAI Services Partner role in Asia Pacific fits the AI-led growth angle, but does not directly change the near term pressure from currency swings and slower client spending, which still look like the key swing factors for earnings and sentiment.

In this context, Nagarro’s April 2025 transfer of Notion Edge France, an SAP CX specialist, sits alongside the OpenAI partnership as part of a push toward higher value, differentiated services. Together, deeper SAP CX capabilities and a formal OpenAI partnership support the existing catalyst that partnerships and investments in AI and data-related offerings could tilt the project mix toward more complex work, which may matter if competition and reinvestment start to weigh on margins.

Yet investors should also be aware that ongoing FX-related earnings volatility could still...

Read the full narrative on Nagarro (it's free!)

Nagarro's narrative projects €1.2 billion revenue and €94.4 million earnings by 2028. This requires 5.4% yearly revenue growth and about a €54.2 million earnings increase from €40.2 million today.

Uncover how Nagarro's forecasts yield a €90.25 fair value, a 12% upside to its current price.

Exploring Other Perspectives

Seven fair value estimates from the Simply Wall St Community span roughly €45 to €90 per share, showing how far apart individual views can be. Against this spread, the thesis that AI focused partnerships might shift Nagarro’s mix toward higher value services gives you one concrete lens to compare with those community expectations and to explore how different risks could shape future outcomes.

Explore 7 other fair value estimates on Nagarro - why the stock might be worth 43% less than the current price!

Build Your Own Nagarro Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Nagarro research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Nagarro research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Nagarro's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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