Has reduced its rating on Satyam Computer Services from accumulate to hold with a target of Rs 212 in its December 19, 2008 research report. "We preferred Satyam to other Tier 1 IT companies under our coverage until now on account of cheap valuations and cash at 35% of the market cap. However the recent set of proposals (though reversed by now) in our view has caused irreparable damage to investor’s faith in the company and we believe it might require several quarters for company to undo the fallout of the current set of events."

"We reduce our rating on the stock from ACCUMULATE to HOLD with a revised target price of Rs 212 (from Rs 376 earlier). Our new target price implies 5x 1 year rolling forward P/E multiple on core earnings of Rs 28.4 (from 9x implied earlier) and cash of Rs 70 per share," says Emkay Global Financial Services' research report.

source: moneycontrol