Needham & Company Reiterates Strong Buy on WNS Holdings (WNS) Following Solid 1Q Report

Needham & Company reiterated a Strong Buy rating and $40.00 price target on WNS Holdings (NYSE: WNS) following the company's 1Q earnings report. Revenue iwas reported at $140.8 million, well above the consensus' $135.4 million estimate. The company also posted $0.45 in EPS, a penny above the Street.

Analyst Mayank Tandon commented, "WNS delivered solid 1Q FY17 results, outperforming expectations despite currency pressures. Constant currency growth accelerated to 16.7% Y/Y in 1Q from 12.7% Y/Y in 4Q, reflecting success in ramping large deals and improved momentum in the emerging verticals. Although WNS lowered FY17 guidance for both revenue and EPS to reflect the recent sharp drop in the pound against the dollar, there is no change to the fundamental outlook. We believe underlying trends for WNS remain strong with potential for upside to estimates as recent project wins ramp and the deal pipeline converts. With the stock trading at an inexpensive 11x ex-cash our FY18 EPS estimate, we believe the risk-reward is compelling. We see improving constant currency growth as a positive catalyst and reiterate rating and $40 target."

For an analyst ratings summary and ratings history on WNS (Holdings) click here. For more ratings news on WNS (Holdings) click here.

Shares of WNS (Holdings) closed at $27.65 yesterday.

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