Virtusa (VRTU) PT Lowered to $32 at Needham & Company; 'Buy' Maintained

August 9, 2016 1:53 PM EDT
Get Alerts VRTU Hot Sheet
Price: $21.29 --0%

Rating Summary:
    10 Buy, 4 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 10 | Down: 16 | New: 25
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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."

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 $26.38 yesterday.

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