Key takeaways from Q1FY17 : IT services revenue up 4.3% qoq in USD – inline with consensus, but ahead of our estimates – driven by strong growth in IBM (IoT Watson deal).The remaining business, excluding IBM, declined -0.7% qoq. EBITDA margins, at 15.1%, declined 80bps qoq – due to visa cost (-100bps), provision for doubtful debt (-30bps) and IBM deal – inline with consensus, but better than our expectations. EBIT Margins declined by 190bps qoq – higher due to amortization of the assets acquired through acquisitions in the last quarter and marginally due to transition to IND-AS accounting.Phillip Capital have revised our FY17/18 estimates,on lower margin expectations continue to value the company at 14x FY18 P/E (unchanged). Their price target of Rs 610 (unchanged) offers 8% downside from current levels. Maintain Sell.Trendlyne has 18 reports on PERSISTENT updated in the last year from 5 brokers with an average target of Rs 715. Brokers have a rating for PERSISTENT with 2 downgrades,4 price downgrades,1 price upgrade in past 6 months and 3 downgrades,5 price downgrades,1 upgrades,3 price upgrades in past 1 Year.