Wells Fargo Starts iGATE (IGTE) at Market Perform; Turnaround Potential At PTI, But Believe Risk/Reward Balanced
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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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Wells Fargo initiates coverage on iGATE (NASDAQ: IGTE) with a Market Perform. PT range of $16-$18.
Wells analyst says, "IGTE is among the larger providers of offshore IT and BPO services, following the company’s acquisition of a majority stake in larger peer Patni (NYSE: PTI) in May 2011. We are intrigued by this new, larger player which has a valuation that is below that of larger Tier I providers, and believe that the stock would be of interest to value-oriented investors. But, we are cautious due to the potential for integration challenges, meaningful debt (54% total debt-to-capital ratio), significant future cash outflows from debt maturities, and potential cash conversion of convertible preferred stock (which includes a paid-in-kind [PIK] feature)."
"Our 2011, 2012, and 2013 pro forma EPS estimates are $0.91, $1.32, and $1.73, respectively, and our 2011, 2012, and 2013 GAAP EPS estimates are $0.39, $0.62, and $1.02, respectively."
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 $16.65 yesterday.
Wells analyst says, "IGTE is among the larger providers of offshore IT and BPO services, following the company’s acquisition of a majority stake in larger peer Patni (NYSE: PTI) in May 2011. We are intrigued by this new, larger player which has a valuation that is below that of larger Tier I providers, and believe that the stock would be of interest to value-oriented investors. But, we are cautious due to the potential for integration challenges, meaningful debt (54% total debt-to-capital ratio), significant future cash outflows from debt maturities, and potential cash conversion of convertible preferred stock (which includes a paid-in-kind [PIK] feature)."
"Our 2011, 2012, and 2013 pro forma EPS estimates are $0.91, $1.32, and $1.73, respectively, and our 2011, 2012, and 2013 GAAP EPS estimates are $0.39, $0.62, and $1.02, respectively."
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 $16.65 yesterday.
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