Needham & Company Maintains a 'Buy' on Syntel (SYNT); Industry Demand Healthy; Business On Plan; Valuation Limits Downside
Tweet
Share
E-mailGet Alerts SYNT Hot Sheet
Price: $40.99 --0%
Rating Summary:
1 Buy, 12 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
1 Buy, 12 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Join SI Premium – FREE
Needham & Company maintains a 'Buy' on Syntel, Inc. (NASDAQ: SYNT) price target of $70.00.
Needham analyst says, "Following the recent market induced correction in the stock, we believe SYNT offers SMID investors a compelling entry point in a high quality 20-25% LT EPS growth story. We believe SYNT is in good shape to outperform expectations over 2H FY11 and valuation limits the downside risk. While the economic picture remains uncertain, we believe the IT offshoring demand climate remains healthy as CIOs continue to leverage low cost offshore IT resources to cut costs and improve efficiencies. We see regulatory changes in financial services and healthcare creating incremental demand opportunities for the IT services sector - SYNT with strong capabilities in both verticals is positioned to capture a disproportionate share of the opportunity. Based on our industry checks through mid-September, we estimate SYNT's business is tracking on plan and there could be upside to estimates over 2H FY11 from incremental strength in the healthcare vertical and favorable currency impact."
For more ratings news on Syntel, Inc. click here and for the rating history of Syntel, Inc. click here.
Shares of Syntel, Inc. closed at $41.08 yesterday.
Needham analyst says, "Following the recent market induced correction in the stock, we believe SYNT offers SMID investors a compelling entry point in a high quality 20-25% LT EPS growth story. We believe SYNT is in good shape to outperform expectations over 2H FY11 and valuation limits the downside risk. While the economic picture remains uncertain, we believe the IT offshoring demand climate remains healthy as CIOs continue to leverage low cost offshore IT resources to cut costs and improve efficiencies. We see regulatory changes in financial services and healthcare creating incremental demand opportunities for the IT services sector - SYNT with strong capabilities in both verticals is positioned to capture a disproportionate share of the opportunity. Based on our industry checks through mid-September, we estimate SYNT's business is tracking on plan and there could be upside to estimates over 2H FY11 from incremental strength in the healthcare vertical and favorable currency impact."
For more ratings news on Syntel, Inc. click here and for the rating history of Syntel, Inc. click here.
Shares of Syntel, Inc. closed at $41.08 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Coherent (COHR) PT Raised to $420 at Needham
- Needham Reiterates Buy Rating on Digimarc (DMRC)
- York Space Systems (YSS) PT Lowered to $18 at Needham
Create E-mail Alert Related Categories
Analyst CommentsRelated Entities
Needham & CompanySign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
