Jefferies downgrades Nagarro to Hold following takeover offer

Jefferies has downgraded Nagarro from ‘Buy’ to ‘Hold’ and adjusted its price target to 81 euros. The decision is primarily driven by the takeover offer from Persistent Systems rather than new operational diagnostics.

Analyst Martin Comtesse expects the acquisition to be completed by the first quarter of 2027 at the latest, after which Nagarro is expected to be delisted. The shift in rating reflects a move from growth-based valuation to focusing on the timing and execution risks of the transaction.