Nomura Securities Starts iGATE (IGTE) at Buy; Attractive Valuation
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Price: $48.00 --0%
Rating Summary:
4 Buy, 6 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
4 Buy, 6 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Nomura Securities initiates coverage on iGATE (NASDAQ: IGTE) with a Buy. PT $19.00.
Nomura analyst, Ashwin Mehta, said, "iGATE post acquisition of Patni – a company ~3x its size in revenues – has successfully integrated the sales force, minimized client/employee attrition and realized initial operational synergies. At Patni, we see iGATE replicating its formula for high margins by plugging inefficiencies at the delivery end and deriving scale benefits on SGA. This operational leverage, in our view, would lead to non GAAP EBITDA margins expanding by 400bps (to 25%) over the next six quarters and a 37% EPS CAGR over FY11-13F. We find the current FY12/13F P/E valuations of 12.3/9.6x attractive and expect the stock to trade at a premium to its tier 2 peers."
For an analyst ratings summary and ratings history on iGATE click here. For more ratings news on iGATE click here.
Shares of iGATE closed at $14.45 yesterday.
Nomura analyst, Ashwin Mehta, said, "iGATE post acquisition of Patni – a company ~3x its size in revenues – has successfully integrated the sales force, minimized client/employee attrition and realized initial operational synergies. At Patni, we see iGATE replicating its formula for high margins by plugging inefficiencies at the delivery end and deriving scale benefits on SGA. This operational leverage, in our view, would lead to non GAAP EBITDA margins expanding by 400bps (to 25%) over the next six quarters and a 37% EPS CAGR over FY11-13F. We find the current FY12/13F P/E valuations of 12.3/9.6x attractive and expect the stock to trade at a premium to its tier 2 peers."
For an analyst ratings summary and ratings history on iGATE click here. For more ratings news on iGATE click here.
Shares of iGATE closed at $14.45 yesterday.
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