Nagarro SE (ETR:NA9) Just Reported Earnings, And Analysts Cut Their Target Price

Nagarro SE (ETR:NA9), a leading global technology services provider, recently reported its earnings, leading analysts to lower their target price for the company. The earnings report, released on May 31, 2024, revealed a mixed performance, with revenue growth and profit margins falling short of analysts' expectations. Despite the downward revision in target prices, analysts maintained a 'Buy' rating for Nagarro, indicating their long-term optimism in the company's growth prospects.

Nagarro's earnings report showed that the company's revenue growth slowed to 11% year-over-year (YoY), down from 16% in the previous quarter. Additionally, the company's earnings before interest and taxes (EBIT) margin decreased to 11.2%, compared to 12.1% in Q2 2023. These factors contributed to analysts' decision to cut their target prices, with the average target price decreasing from 116.5 EUR to 112.25 EUR, a reduction of 3.68%.

Despite the downward revision in target prices, analysts remain bullish on Nagarro SE. The consensus rating is 'Buy' from four analysts, with an average target price of 112.25 EUR, indicating a 20.70% increase from the last close price of 93.00 EUR. This positive outlook reflects analysts' confidence in Nagarro's long-term growth prospects, driven by its strategic focus on digital engineering, intelligent enterprise, and experience and design services.

Nagarro's earnings report also highlighted the company's strong financial performance, with a 5-day change of +2.44% and a year-to-date change of +5.79% (as of 16/11/2024). This resilience and growth potential, coupled with the company's positive analyst recommendations, contribute to the market's overall sentiment towards Nagarro SE.



In conclusion, Nagarro SE's recent earnings report led analysts to cut their target prices, reflecting the company's mixed performance in revenue growth and profit margins. However, analysts maintain a bullish outlook on Nagarro, with a 'Buy' consensus and an average target price of 112.25 EUR. The company's strong financial performance and strategic focus on growth areas position it well for long-term success. Investors should monitor Nagarro's progress and consider its potential as a promising investment opportunity.