Reliance Securities has recommended 'Buy' on Persistent Systems (PSYS) with target price of Rs 875 in its report.

Commenting on the investment rationale, the stock broker said, ''We have initiated coverage on (PSYS) with Buy recommendation and target price of Rs 875. We see PSYS as a bona fide player in digital technology with strong capabilities in software product development and expect PSYS' growth to be led by enterprise division based on, a) robust account addition and large addressability, b) solid partner framework forming sell-with strategy in enterprise (BFSI-Appian & Life-sciences-Salesforce) and, c) expansion of European presence.

We also expect intellectual property (IP) business (Accelerite) to contribute to growth with scaling-up of incubated IPs as well as on acquisition of IPs combined with a bundling strategy. Our target price of Rs 875 implies 1) 18x Sep'17 which is within its +1StdDev of its 1-yr forward, 2) in-line with DCF-derived value, and 3) discount to its global peers.'' 

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