Needham & Company Remains Bullish on Perficient, Inc. (PRFT) Following Investor Meetings

Needham & Company reiterated a Buy rating and $24.00 price target on Perficient, Inc. (NASDAQ: PRFT) after hosting management at investor meetings this week. Needham came away from the meetings confident that the industry demand backdrop remains healthy, and that the healthy industry demand backdrop, fueled by spending on digital transformation and compliance and risk management projects, and the recent strength in bookings should translate into improving organic growth over FY16.

Analyst Mayank Tandon commented, "We hosted PRFT for investor meetings in the Midwest this week. We came away from the trip confident that the industry demand backdrop remains healthy and that management is executing on its strategy to drive improved organic growth and sustained margin expansion. While growth trends appear to be broad based, we believe the key healthcare, retail and consumer product segments are leading the way, with the ongoing mix shift to offshore also boosting volumes. Along with the improved organic growth outlook, we see potential for sustained margin expansion from higher utilization, increased offshore volume, and operating leverage. Despite the strength in shares YTD, up 26.7%, we believe the risk-reward remains favorable at 14x our FY17 EPS estimate. We reiterate our BUY rating with a $24 target."

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

Shares of Perficient closed at $21.72 yesterday.

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