Needham & Company Reiterates a 'Buy' on iGATE (IGTE); Strong Finish To FY12; Focus Turning To Improving Revenue Growth
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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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Needham & Company reiterates a 'Buy' on iGATE (NASDAQ: IGTE) price target of $23.00.
Needham analyst said, "IGTE finished the year strong, putting up a solid 4Q FY11 with in line revenue, strong margins, and EPS upside. IGTE's management has done a commendable job on the Patni (PTI-NR) integration front, delivering cost synergies well ahead of target while at the same time improving key operating metrics (pricing, attrition, and utilization). Although IGTE does not give specific guidance, we believe management's commentary around demand trends and IGTE's win rate in the market, especially versus its larger peers, sounded incrementally more positive. With further progress on integrating the IGTE and PTI sales engines and better execution in the field, we believe IGTE could see revenue growth trajectory improve. While the majority of the cost synergies are behind IGTE, we believe there is still room for further margin expansion from operating leverage, and better utilization and realization. Net-net we remain confident IGTE can deliver our above-consensus EPS target of $1.50 and, with valuation at 12x, we believe the risk-reward remains attractive."
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 $17.74 yesterday.
Needham analyst said, "IGTE finished the year strong, putting up a solid 4Q FY11 with in line revenue, strong margins, and EPS upside. IGTE's management has done a commendable job on the Patni (PTI-NR) integration front, delivering cost synergies well ahead of target while at the same time improving key operating metrics (pricing, attrition, and utilization). Although IGTE does not give specific guidance, we believe management's commentary around demand trends and IGTE's win rate in the market, especially versus its larger peers, sounded incrementally more positive. With further progress on integrating the IGTE and PTI sales engines and better execution in the field, we believe IGTE could see revenue growth trajectory improve. While the majority of the cost synergies are behind IGTE, we believe there is still room for further margin expansion from operating leverage, and better utilization and realization. Net-net we remain confident IGTE can deliver our above-consensus EPS target of $1.50 and, with valuation at 12x, we believe the risk-reward remains attractive."
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 $17.74 yesterday.
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