Persistent Systems Scales Fresh Highs After Buying US Firm To Expand AI Businesses

Shares of Persistent Systems Ltd. scaled a fresh record high on Tuesday after it acquired a New Jersey-based firm to expand artificial intelligence-driven businesses.

The global technical solution provider has acquired Starfish Associates to strategically expand its AI-driven transformation and deepen its expertise in business operations, the company said.

Starfish Associates is recognised for its enterprise communication automation platform and serves many Fortune 500 companies, Persistent Systems said in a release on Wednesday.

The New-Jersey based firm's automation platform boasts of facilitating seamless connections across business applications like Microsoft Teams, Amazon Connect, Avaya, and Cisco, according to the press release.

Separately, the company said that is has dissolved its step-down US subsidiary, Software Company International LLC, with effect from June 27 as it received certification of dissolution from Secretary of State of North Carolina, according to an exchange filing.

Shares of Persistent Systems rose 3.17% higher to a record high of Rs 4,739. It was trading 2.23% higher at Rs 4,969.05 as of 9:45 a.m., compared to 0.30% advance in the NSE Nifty 50 index.

The stock has risen 92.96% in 12 months and 26.7% on year-to-date basis. Total traded volume so far in the day stood at 2.8 times its 30-day average. The relative strength index was at 84.75, which implied the stock is overbought.

Out of 35 analysts tracking the company, 16 maintain a 'buy' rating, eight recommend a 'hold,' and 11 suggest a 'sell', according to Bloomberg data. The average 12-month consensus price target implies a downside of 19.6%