Exlservice (EXLS) Reiterated at Buy by Stifel as Modest Q2 Beat Expected

Stifel analyst David Grossman reiterated a Buy rating and $46.00 price target on Exlservice (NASDAQ: EXLS).

The analyst commented, "2Q/2H consensus assumes ~12%/10-11% organic cc growth, respectively (assuming not yet updated for FX and iMerit). We expect modest 2Q beat/2026 raise consistent with historical profile.2HE deceleration less concerning given typical quarterly outperformance (no quarterly-guide).EXL well-positioned to continue gaining wallet share managing core workflows for highly regulated industries that can benefit from AI-use cases. EXL owns workflow and related IP/AI embedded in these processes, which should help drive revenue growth and margin as AI-use cases proliferate.Recent acquisition (iMerit) expands services/competitive moat, which should enhance durability of growth via wallet share gains/higher retention.Despite maintaining DD revenue growth, 2-3x its peers, while maintaining margins, EXL’s multiple has compressed with the industry.While we don't expect growth acceleration in the current environment and stock trading at ~15.0x FCF (w/SBC), we are hopeful durability/consistency of the model gets more recognition overtime."

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

Shares of Exlservice closed at $27.58 yesterday.

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