Newgen Software share price rallies over 4% after Jefferies raises target

Newgen Software Technologies share price rallied over 4% on Monday after foreign brokerage firm Jefferies raised target price on the stock. Newgen Software shares gained as much as 4.16% to 1,474.00 apiece on the BSE.

Jefferies maintained a ‘Buy’ rating on Newgen Software Technologies and raised the target price to 1,740 per share, based on 35x PE, implying a PEG of 1.3x, from earlier 1,275.

The brokerage said it was more confident on Newgen’s growth outlook and raised its revenue estimates by 2-3% and EPS estimates by 2-4%.

“We expect Newgen to deliver a strong 26% EPS