Needham & Company Reiterates a 'Buy' on Virtusa (VRTU); Valuation Remains Inexpensive

Needham & Company reiterates a 'Buy' on Virtusa (NASDAQ: VRTU) price target of $21.00.

Needham analyst says, "At 13-14x ex-cash our CY12 EPS estimate for 30%+ LT EPS growth, we believe the risk-reward remains attractive. While the shortfall from the ALaS acquisition back in 2Q has slowed the revenue growth and margin expansion trajectory in FY12, 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 LT."

For an analyst ratings summary and ratings history on Virtusa click here. For more ratings news on Virtusa click here.

Shares of Virtusa closed at $15.99 yesterday.

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