LTM shares fall over 7%, near 52-week low, after bears call growth targets 'ambitious'

Shares of LTM Ltd. declined 7% on Wednesday, June 3, after the company's management, at its analyst day, said it aspires to double revenue in five years and expand its EBIT margins by 200 basis points by the financial year 2031.

This is the biggest single-day fall for the stock since January 2024. The stock has also snapped a four-day gaining streak.

LTM Analyst Day Highlights

The company during the analyst day said that the enterprise tech spend will increase from $1.3 trillion to $2.3 trillion.

The management also expects AI to shrink the current enterprise spend by 20% - 25% or $0.3 trillion. It sees new opportunities as enterprises hurry to modernise their tech debt and emergence of Business AI Services.

LTM said FY26 was a year of pilots and proofs of concept (POCs) and it expects FY27 to be the year of AI adoption at scale, which will create a larget opportunity for companies. The management intends to shift towards and outcome-based non-linear model, with a gradual shift towards a diamond shaped workforce.

The company continues to build the bottom of the pyramid with approximately 6,000 to 7,000 freshers hired every year, it said.

Brokerages Bearish

Brokerages UBS and Jefferies have "neutral" and "underperform" ratings on the stock with price targets of ₹4,520 and ₹3500 respectively. These indicate an upside of 4% and a downside of 19.3% respectively, from the stock's previous closing price.

Both brokerages reiterated highlights from LTM's analyst day.

Jefferies said LTM's plants to pivot to outcome-based offerings requires a material change to pricing and talent strategy which may not be easy to execute.

In this context, its aspirations to double revenues by 2031 with 200 basis points margin expansion seem very optimistic, according to Jefferies' note.

Of the 43 analysts who have coverage on the stock, 24 have a "buy" rating, 13 have a "hold" rating and six have a "sell" rating.

LTM shares declined 7.4% to hit an intraday low of ₹4,021.1 apiece on Wednesday. This is the stock's biggest single-day fall in the last four years, although it did decline 6.8% on February 24, 2026.

On a year-to-date basis, the stock is down 10% after today's fall.

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