Nomura Securities Maintains a 'Buy' on iGATE (IGTE); Moderating Revenues Built In
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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 maintains a 'Buy' on iGATE (NASDAQ: IGTE) price target of $21.00.
Analyst, Ashwin Mehta, said, "We believe moderation in iGATE’s revenue growth expectations from 8-10% in FY12 to closer to mid-teens is largely built into our forecasts. We are confident in our FY13F revenue growth estimate of 13%. In terms of Q2 results, iGATE’s 2Q revenue growth of 1.8% q-q was better than our expectation of 1.2% q-q, but was lower on EBITDA margins (a decline of 190bps vs our estimate of 50bp decline) and PAT at USD12.7mn (vs our estimate of USD21mn). Higher visa applications and substantial forex translation losses led to the miss on our PAT forecast. We cut our FY12F revenue growth estimates to 4%/13% in FY12/13F, respectively, on slower acceleration; our FY12F EPS estimates are lower by 10%, while we keep our FY13F EPS estimates intact. Over FY11-14F, we expect pro forma revenue CAGR of 8% and EPS CAGR of ~60%."
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 $15.98 yesterday.
Analyst, Ashwin Mehta, said, "We believe moderation in iGATE’s revenue growth expectations from 8-10% in FY12 to closer to mid-teens is largely built into our forecasts. We are confident in our FY13F revenue growth estimate of 13%. In terms of Q2 results, iGATE’s 2Q revenue growth of 1.8% q-q was better than our expectation of 1.2% q-q, but was lower on EBITDA margins (a decline of 190bps vs our estimate of 50bp decline) and PAT at USD12.7mn (vs our estimate of USD21mn). Higher visa applications and substantial forex translation losses led to the miss on our PAT forecast. We cut our FY12F revenue growth estimates to 4%/13% in FY12/13F, respectively, on slower acceleration; our FY12F EPS estimates are lower by 10%, while we keep our FY13F EPS estimates intact. Over FY11-14F, we expect pro forma revenue CAGR of 8% and EPS CAGR of ~60%."
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 $15.98 yesterday.
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