KPIT issued a profit warning yesterday, guiding to a 4% qoq decline in US$ revenues for 1QFY17.The company mentioned that it is ‘going through internal changes in structure as well as external changes in the business environment’. The revival in its ERP business is much more prolonged than what the management earlier anticipated.The management also expects 2QFY17 to be flat qoq – both in terms of revenue and profitability. Phillip Capital continues to value the stock at 9x FY18 P/E – though we see a downside risk to the multiple, if the weak performance persists. Phillip Capital price target of Rs 125 (RS 140 earlier),maintain SELL.Trendlyne has 16 reports on KPIT updated in the last year from 6 brokers with an average target of Rs 175.2. Brokers have a mixed rating for KPIT with 1 downgrade, 2 price downgrades and 5 price upgrades in past 6 months, 2 downgrades and 6 price upgrades in past 12 months.