Virtusa (VRTU) PT Lowered to $32 at Needham & Company; 'Buy' Maintained
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Needham & Company analyst Mayank Tandon cut his price target on Virtusa (NASDAQ: VRTU) to $32.00 (from $45.00) but maintained a Buy rating on valuation.
Tandon commented, "Although VRTU delivered 1Q results ahead of expectations, management pointed to incremental pressure on demand resulting from increased economic uncertainty, consistent with its peers, and reduced FY17 guidance. While we are disappointed with the guidance cut (revenue ~5% and EPS ~25% at the midpoint), we were encouraged to hear that management has scrubbed the pipeline further and the revised outlook is based on a higher level of visibility than previously. We are lowering our estimates to the low-end of the revised guidance range, but maintaining our BUY rating based on an inexpensive valuation and potential for revenue and earnings growth trends to improve over 2H FY17 and into FY18. Our target is lowered to $32."
Shares of Virtusa closed at $26.38 yesterday.
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Create E-mail Alert Related CategoriesAnalyst Comments, Analyst PT Change
Related EntitiesNeedham & Company, Earnings
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