Sonata Software: Down 15% in August, a temporary blip or long-term opportunity? Systematix sees 23% upside potential

Sonata Software has faced a challenging year, with its stock down nearly 30 percent from its peak in February 2024. Despite this significant correction, brokerage house Systematix remains optimistic about the company’s long-term prospects, viewing the recent downturn as a temporary blip rather than a sign of deeper troubles.

Systematix has initiated coverage on Sonata Software with a buy call and set a target price of ₹760, suggesting an upside potential of 23 percent from the current market price. The brokerage’s optimism is rooted in the belief that the company’s fundamental growth drivers remain intact, despite recent volatility.