Needham & Company Reinstates Coverage on Virtusa (VRTU) at Buy; A Powerful Earnings Growth Story

Needham & Company reinstates coverage on Virtusa (NASDAQ: VRTU) with a Buy. PT $25.

Needham analyst says, "We see Virtusa as a compelling idea for small-cap growth investors looking to play the global IT offshoring trend. With growth improving at Virtusa’s top 10 accounts and recent customer wins starting to contribute to revenue at a faster pace, we see the potential for strong revenue growth continuing through FY12. With Virtusa's margins running well below industry peers, we also see potential for sustainable margin expansion as the model scales. Valuation at 15x (ex-cash) CY12 EPS power is compelling for 30%+ organic EPS growth."

For more ratings news on Virtusa click here and for the rating history of Virtusa click here.

Shares of Virtusa closed at $20.41 yesterday.

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