iGate (IGTE) Remains 'Buy'-Rated at Noble Financial Following Q4 Report

Noble Financial affirms iGate (Nasdaq: IGTE) at Buy with a price target of $50 following the company's recent Q4 report. Analyst Vincent Colicchio offered the following observations and commentary on iGate following the event:

• Reported fourth quarter 2014 non-GAAP EPS of $0.52, which was less than our forecast of $0.54 and street consensus forecast of $0.55, respectively
• While revenue exceeded forecast by 1%, earnings fell short of our model due to gross margin shortfall of 70 basis points and higher-than-expected overhead costs
• Revenue outlook tempered by large contract delay and price discount with top 20 clients; biased toward reducing 2015 revenue growth forecast from 10% to 9%
• While overall pipeline was flat year-over-year at approximately $3 billion, the vertical mix shifted toward areas of strength, such as banking/financial services, insurance and manufacturing and away from less competitive areas such as government
• Earnings model and price target are under review; biased toward reducing 2015 non-GAAP EPS forecast from $2.45 to $2.15 level

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

iGate closed at $33.02 yesterday.

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