Persistent Systems Limited - PERSISTENT is undergoing a calibrated transformation to align itself with an evolving business environment. We believe our thesis transcends the short-term margin hurdle supported by (1) Focused business strategy of re-organisation into four moulds (digital, services, alliance and Accelerite), (2) Revving up of the sales engine, (3) Stability in the ISV business, (4) Continued leverage of partner framework (Salesforce, Appian) supporting enterprise acceleration and, (5) Mild EU exposure (5.2%). Enterprise acceleration of 43% YoY in 1Q (35.3% in FY16) and ISV logging its best sequential growth in the past three quarters validate our expectations, despite margins exhibiting the full-quarter impact of the IBM-IoT integration. With a service offering that straddles core tech and business apps, Persistent offers a uniquely blended play on the digital IT wave. HDFC Securities expect 15% earnings CAGR and maintain BUY with a TP of Rs 735 based on 15x FY18E EPS, even as we tweak down estimates mildly.Trendlyne has 20 reports on PERSISTENT updated in the last year from 6 brokers with an average target of Rs 744.2. Brokers have a rating for PERSISTENT with 2 downgrades,5 price downgrades,2 price upgrades in past 6 months and 3 downgrades,6 price downgrades,4 price upgrades in past 1 Year.