Systems Limited (PSX: SYS), Pakistan’s largest listed IT services company, has received a bullish outlook from JS Global, which projects a target price of Rs180 per share by June 2026. The projection is based on a Discounted Cash Flow (DCF) valuation and implies a 35% upside from current market levels.
Currently trading around Rs137, SYS has experienced a sharp decline from its earlier peak of nearly Rs550, largely due to technical adjustments following recent corporate actions rather than any fundamental weakness. In May 2025, Systems Limited issued 367,000 shares under its Employee Share Option Scheme (ESOS), followed by a 1:5 stock split on May 31, 2025. These actions increased the total share count to approximately 1.47 billion, thereby impacting the per-share price but not the intrinsic valuation of the company.
SYS operates as a full-spectrum technology provider offering enterprise software implementations, cloud and digital transformation solutions, IT consulting, and BPO services. With over 87% of its revenues generated through exports, the company maintains a strong presence across North America, Europe, the Middle East & Africa (MENA), and Asia-Pacific (APAC).
The MENA region continues to be the company’s fastest-growing market, now contributing 59% to SYS’s topline. Revenues from MENA surged 35% year-on-year in CY24 and are forecasted to grow at a 71% CAGR over the next five years. Saudi Arabia and the UAE collectively account for 80% of this regional revenue, benefiting from national digitization strategies that align well with SYS’s offerings.
According to projections, the MENA IT services market is expected to reach $54.9 billion by CY25, with Saudi Arabia alone poised to hit $69.8 billion by CY30. Systems Limited estimates that the revenue potential in Saudi Arabia is three to five times greater than in the UAE, underlining the strategic importance of this market.
North America remains another major contributor, supported by SYS’s long-standing presence and consistent demand for cloud migration and digital transformation projects, especially in Retail and CPG sectors. The region is expected to post a five-year CAGR of 19%. In Europe, while starting from a smaller base, the company is targeting a 22% CAGR. APAC saw 73% year-on-year growth in CY24 and is forecasted for a more normalized CAGR of 9.5%, with SYS aiming for 40% cumulative revenue growth by CY29.
Vertical-wise, the Banking, Financial Services, and Insurance (BFSI) sector remains dominant, contributing 30% of overall revenue in CY24. The acquisition of Temenos’s regional partner has been pivotal, giving SYS first right of refusal to implement the Core Model Bank in MENA and APAC. Other key verticals include Retail & CPG, which also saw 34% growth, Telecommunications with 31% growth, and Technology, which delivered slower growth but stronger margins.
Despite trading at a forward CY26E P/E of 12x, the company is expected to deliver a 37% CAGR in earnings over five years. With 94% of revenue in USD and only 43% of costs in the same currency, SYS benefits from a natural hedge against rupee volatility, supporting its margin profile.
The company is also pursuing inorganic growth. Its acquisition of BAT SAA Services, approved in July 2025, strengthens its BPO delivery capacity and expands its global footprint. SYS’s share in Pakistan’s total IT exports has climbed from 2.3% in CY17 to 6.6% in CY24, with an expected rise beyond 7% by CY27.
However, the outlook is not without risks. Slower growth in MENA, rupee appreciation, expiration of the 0.25% export tax rate, talent retention challenges, and structural disruption from AI could all impact future performance. A potential reversion to standard corporate tax rates would reduce projected CY27 EPS by 22%.
Nonetheless, with expanding global reach, a healthy revenue pipeline, and resilient margins, Systems Limited continues to position itself as a key player in Pakistan’s tech sector, with a strong buy rating from JS Global.