Virtusa (VRTU): Cutting PT To $24 - Needham
- Unemployment Rate Drops to 4.6%
- Unusual 11 Mid-Day Movers 12/2: (ASNA) (HTBX) (REPH) Higher; (PLX) (MEMP) (DRYS) Lower
- Bond yields fall on U.S. jobs data, euro flat before Italy vote
- Alibaba (BABA) Founder Jack Ma Discuss Plans to Retire; 'I Don't Want to Die at the Office'
- Starbucks Coffee (SBUX) CEO Howard Schultz to Step Down, Appointed Executive Chairman; Kevin Johnson New CEO
Find out which companies are about to raise their dividend well before the news hits the Street with StreetInsider.com's Dividend Insider Elite. Sign-up for a FREE trial here.
Needham & Company analyst, Mayank Tandon, reiterated his Buy rating on shares of Virtusa (NASDAQ: VRTU) but cut his price target to $24 from $32 after the company delivered in line 2Q results, showing improved revenue momentum in the key banking, financial services, and insurance vertical.
While the revenue guidance for FY17 was essentially maintained, management once again lowered the EPS range to account for lower utilization, higher onsite effort, and currency headwinds. Despite the lower margin outlook, the analyst believes the stability in revenue trends despite industry cyclical pressures should lead to sequential margin improvement, albeit at a slower rate.
The stock trading is currently trading 8x FY18 EPS (ex-cash ) making the risk-reward for small-cap value-based investors appealing.
Shares of Virtusa closed at $18.80 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Jefferies Raises Price Target on Zumiez, Inc. (ZUMZ) to $23 Following 3Q
- Oppenheimer Cuts Price Target on Workday (WDAY) Following 3Q; Reiterates Outperform
- FBR Capital Cuts Price Target on Express (EXPR) Following 3Q EPS Miss
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst PT Change, Earnings
Related EntitiesNeedham & Company
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!