GFT's shares have fallen sharply recently, tracking a steep fall in Deutsche Bank’s shares, along with broad declines across the banking sector. We note that Deutsche Bank generates c 40% of GFT’s revenues. At the time of the Q3 results, GFT said it expects stable revenues from Deutsche in FY16, with the growth coming from other parts of the business. GFT is on Deutsche’s strategic partner list, and GFT handles complex IT projects for Deutsche, along with maintenance of its core business. Competition in this space is low. The IT area at risk in the case of cost-cutting is the commodity IT business, which GFT is not involved in, and is mostly handled by large IT service providers (including the India-based majors). GFT's shares traded at c €32 in early December and, in the wake of the share price de-rating, now look significantly more attractive, trading on c 15x our maintained FY17 earnings.
