Kaufman Bros. Upgrades VanceInfo Technologies (VIT) to Buy; Fundamentals Intact; Valuation Offers Attractive Entry Point

Kaufman Bros. upgraded VanceInfo Technologies (NYSE: VIT) to Buy with a price target of $25.00.

Kaufman analyst says, "We see minimal downside to VanceInfo's annual guidance of adjusted operating margins at approximately 17%. We expect pricing improvement in 2H11 to be a key driver offsetting double-digit wage inflation and employee attrition. In addition, broadening of the employee pyramid, higher presence in Tier 2 cities and operating leverage over a larger revenue base should assist margin profile moving forward, in our view. We note the company fine tuned its annual operating margin outlook down by 50 bps. in 1Q11, led by wage hikes and increased investments."

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

Shares of VanceInfo Technologies closed at $17.58 yesterday.

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