Kaufman Cuts Price Target on VanceInfo Technologies (VIT), Could Top Low Expectations
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Price: $7.58 --0%
Rating Summary:
4 Buy, 4 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
4 Buy, 4 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Kaufman Bros. is reiterating its Buy rating on shares of VanceInfo Technologies (NYSE: VIT), but is reducing its price target from $20 to $16.
The firm believes the third quarter will indicate that employee attrition levels will fall from its peak in Q2 and that increases in employee wages will continue for the second half of the year for the remaining employees.
Results for the quarter and expected to fall inline and Kaufman notes reaffirmed full year guidance would be a positive catalyst for the stock. Also given the recent move in the stocks price, the firm highlights the attractive risk reward at current levels.
An analyst at Kaufman comments, "As a leading IT services provider in China, VanceInfo is well positioned to capitalize on the M&A opportunities in a highly fragmented IT services market, in our view. Unlike some of its Chinese IT peers, we believe VanceInfo has been largely disciplined in its M&A strategy."
For Q3 and FY11, the firm estimates EPS of $0.22 and $0.91. Revenue for the quarter and full year is forecasted to be $71 million and $274.9 million. The consensus is calls for EPS of $0.20 with $70.64 million in sales.
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 $10.68 yesterday.
The firm believes the third quarter will indicate that employee attrition levels will fall from its peak in Q2 and that increases in employee wages will continue for the second half of the year for the remaining employees.
Results for the quarter and expected to fall inline and Kaufman notes reaffirmed full year guidance would be a positive catalyst for the stock. Also given the recent move in the stocks price, the firm highlights the attractive risk reward at current levels.
An analyst at Kaufman comments, "As a leading IT services provider in China, VanceInfo is well positioned to capitalize on the M&A opportunities in a highly fragmented IT services market, in our view. Unlike some of its Chinese IT peers, we believe VanceInfo has been largely disciplined in its M&A strategy."
For Q3 and FY11, the firm estimates EPS of $0.22 and $0.91. Revenue for the quarter and full year is forecasted to be $71 million and $274.9 million. The consensus is calls for EPS of $0.20 with $70.64 million in sales.
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 $10.68 yesterday.
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