Needham & Company Reiterates a 'Buy' on Virtusa (VRTU); Done In By Acquisition; Organic Trends On Track; Use Weakness To BUY
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Price: $51.33 --0%
Rating Summary:
6 Buy, 8 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 7 | Down: 11 | New: 17
Rating Summary:
6 Buy, 8 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 7 | Down: 11 | New: 17
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Needham & Company reiterates a 'Buy' on Virtusa (NASDAQ: VRTU) price target lowered from $25 to $23.
Needham analyst says, "VRTU disappointed investors last night with a miss on revenue for 2Q and a guide down for the year. The hit to numbers is from the impact of its recent acquisition of ALaS, which sells into the capital markets vertical and saw two large deals get pushed out late in the quarter. On an organic basis though, VRTU continues to deliver solid results and that gives us confidence that the reduction in guidance from delays at ALaS is a hiccup and not the start of a negative trend. We continue to believe VRTU is a 20%+ organic revenue grower with sustainable margin expansion potential (100-200 bps per year) and 30%+ EPS growth. With the stock likely to get punished, we recommend investors use the weakness to add to or initiate positions, especially with the stock trading at 14x ex-cash CY12 EPS power for 30%+ LT EPS growth."
For more ratings news on Virtusa click here and for the rating history of Virtusa click here.
Shares of Virtusa closed at $16.28 yesterday.
Needham analyst says, "VRTU disappointed investors last night with a miss on revenue for 2Q and a guide down for the year. The hit to numbers is from the impact of its recent acquisition of ALaS, which sells into the capital markets vertical and saw two large deals get pushed out late in the quarter. On an organic basis though, VRTU continues to deliver solid results and that gives us confidence that the reduction in guidance from delays at ALaS is a hiccup and not the start of a negative trend. We continue to believe VRTU is a 20%+ organic revenue grower with sustainable margin expansion potential (100-200 bps per year) and 30%+ EPS growth. With the stock likely to get punished, we recommend investors use the weakness to add to or initiate positions, especially with the stock trading at 14x ex-cash CY12 EPS power for 30%+ LT EPS growth."
For more ratings news on Virtusa click here and for the rating history of Virtusa click here.
Shares of Virtusa closed at $16.28 yesterday.
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