Needham & Company Reiterates a 'Buy' on Virtusa (VRTU); Risk-Reward Attractive Despite Mixed Results and Guidance

May 10, 2012 10:17 AM EDT
Get Alerts VRTU Hot Sheet
Price: $26.85 -0.81%

Rating Summary:
    11 Buy, 3 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 30 | Down: 30 | New: 23
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Needham & Company reiterates a 'Buy' on Virtusa (NASDAQ: VRTU) price target lowered from $21 to $19.

Analyst, Makank Tandon, said, "VRTU delivered a decent 4Q FY12, with revenue and EPS coming in line with expectations. While the demand environment remains choppy, particularly in the banking vertical, management is forecasting healthy 1-4% Q/Q revenue growth in 1Q FY13 and 13-19% Y/Y revenue growth in FY13. Although the guidance is slightly below expectations, it still calls for healthy growth and is ahead of industry growth forecasts. The guidance also calls for operating leverage and 30% EPS growth at the mid-point."

Needham reduces FY13 EPS estimate to mid-point of the guidance range (from $1.15 to $1.03)

For an analyst ratings summary and ratings history on Virtusa click here. For more ratings news on Virtusa click here.

Shares of Virtusa closed at $12.53 yesterday.

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