Kotak Securities has recommended `Accumulate` on Geometric with a price target of Rs 75 as against the market price (CMP) of Rs 64 in its report dated Jun. 11, 2010.

``The Geometric stock has corrected close to 17% since our previous downgrade on April 27; meaningfully under-performing the broader markets that have corrected around 6% over the same period.

We revise estimates to reflect our caution on prospects of the smaller players in the sector: build in a lower pick up in revenues over the near term, higher wage inflation and increased SG&A. All put together they lead to a 8% cut in our FY11E EPS.

While greater visibility on the demand environment remains key to a more favorable outlook; noting the relatively cheap valuations and the upside to our target price of Rs 75 (Rs 85 earlier) we move the stock to an Accumulate from a previous Reduce,`` the broking house said.

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