They revise their outlook on KPIT Tech considering the ominous challenges looming over the SBU and vertical portfolios, resulting into growth dichotomy within segments. Our earlier expectation of recovery seems protracted beyond the near to medium term, which is in sync with the recent business update by the management.Weakness in ERP implementation will dent the quarter as well as 1HFY17E. The IES division is likely to be impacted with lower traction in Oracle JDE, which is linked to the energy vertical (energy and utilities comprise 18% of revenue). It will also be impacted by lower on-premise spend as thrust on cloud services gathers momentum. We’ve factored USD revenue growth at -1.4/7.8% for FY17E/18E and EBITDA of 12.8/13.1% for the same period, with 1% EPS CAGR over FY16-18E. With the EPS downgrade of 21/23% and 9x FY18E EPS (discount to five-year average of 10.5x), HDFC Securities lower our TP to Rs 130 (Rs 205 earlier) with a SELL.Trendlyne has 17 reports on KPIT updated in the last year from 6 brokers with an average target of Rs 162.7. Brokers have a rating for KPIT with 2 downgrades,3 price downgrades and 5 price upgrades in past 6 months,3 downgrades,5 price downgrades and 6 price upgrades in past 1 Year.