Nagarro (XTRA:NA9): Reassessing Valuation After Joining the OpenAI Services Partner Program

How the OpenAI partnership ties into Nagarro’s stock story

Nagarro (XTRA:NA9) becoming an OpenAI Services Partner is less about a one day headline and more about how investors should think about its future AI driven revenue mix and client stickiness.

See our latest analysis for Nagarro.

The OpenAI partnership has landed just as sentiment is turning. A 1 month share price return of 77.92 percent and a 3 month share price return of 57.39 percent have helped reverse earlier weakness, even though the 1 year total shareholder return is still negative and longer term holders remain underwater.

If this kind of AI driven rerating has your attention, it is worth exploring other tech names using our curated list of high growth tech and AI stocks.

After years of weak returns despite solid earnings momentum and only a modest discount to analyst targets, are markets still underestimating Nagarro’s OpenAI upside, or already pricing in the next leg of AI powered growth?

Most Popular Narrative Narrative: 12.6% Undervalued

According to Broke_Joe, Nagarro’s narrative fair value of €88.95 sits meaningfully above the last close at €77.75, hinting at a sizable upside gap.

In the base case, revenue and profitability are set to rise steadily over the next five years, with valuation metrics likely to improve accordingly. While competition and economic cyclicality pose risks, Nagarro's positioning in high-demand segments such as AI, cloud, and data analytics provides resilience and upside potential.

Read the complete narrative.

Curious how steady top line growth, fatter margins, and a punchy earnings multiple all combine to justify that upside target? Want to see the full blueprint?

Result: Fair Value of €88.95 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, sustained macro weakness or aggressive pricing from larger rivals could derail margin expansion, slow contract wins, and quickly compress that perceived valuation upside.

Find out about the key risks to this Nagarro narrative.

Build Your Own Nagarro Narrative

If you see the story differently or prefer to dig into the numbers yourself, you can build a personalized view in just minutes: Do it your way.

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.

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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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